A liquidation in futures/perps is a forced position close triggered when a position no longer meets the exchange’s margin requirements. On charts, liquidation waves often align with sharp impulses: price sweeps levels, leverage breaks, and the market either continues or cools off.

Liquidation data works best as context, not as an entry button. It helps you see where leverage breaks, how stressed the market is, and whether the move looks local to one venue or broad across venues. Entries still come from chart structure and a clear risk rule.

Disclaimer: This is not financial advice. Trading involves risk.

What crypto-resources.com provides

On crypto-resources.com, liquidations are delivered as a real-time event stream from Bybit and Binance, split into:

• Liq Long — longs got liquidated
• Liq Short — shorts got liquidated

You can then filter that stream using:

• Min Amount $ (minimum liquidation notional)
• % of Total OI (minimum share of open interest impacted)
• Volume-based coin filtering
• Optional Telegram Alert

This turns a noisy feed into a usable workflow: you see fewer events, but the ones you do see carry more weight.

Why % of Total OI matters (more than “just a big number”)

The same dollar amount means very different things across contracts.

• In a massive open interest market, a large notional liquidation can still be routine.
• In a smaller open interest contract, a smaller notional can be a meaningful leverage flush.

That’s why % of Total OI is valuable: it normalizes the event by asking a simple question:

• How much of the current open interest did this liquidation remove?

Reading Liq Long vs Liq Short (what the stream usually implies)

Treat direction first, then confirm on the chart.

When Liq Long spikes

This commonly appears during downside flushes: longs get forced out and pressure increases.

How to respond:

• Don’t buy the first emotional candle.
• Wait for stabilization and structure (level, reclaim, retest, range).
• Define invalidation before entry.

When Liq Short spikes

This often shows up in squeezes: shorts get forced out and upside acceleration increases.

How to respond:

• Don’t chase the impulse.
• Prefer pullback/retest entries.
• Confirm structure and define invalidation.

When the same kind of event shows up on both Bybit and Binance

That’s more likely a broad market move than a local distortion.

How to respond:

• Respect the faster regime.
• Keep the same rules: structure first, fixed risk always.

Building a liquidation screener on crypto-resources.com

Your setup flow is straightforward:

Type → Exchange → Min Amount $ → % of Total OI → (Telegram Alert) → Add

1) Type: Liq Long or Liq Short

Start with one direction so you don’t mix contexts.

• Looking for downside leverage flushes → Liq Long
• Studying squeezes → Liq Short

2) Exchange: Bybit or Binance

If your goal is cleaner confirmation, build two separate screeners (one per exchange) and compare how events behave. If you prefer a simpler workflow, run one exchange first and add the second once your thresholds are tuned.

3) Min Amount $ (noise filter)

This is your attention filter.

• Too low: you’ll watch micro-prints that don’t matter.
• Too high: you’ll miss valid events, especially outside top pairs.

A practical approach is to set a baseline and tune it based on the liquidity of the coins you follow (more liquid coins usually need a higher notional threshold to stay meaningful).

4) % of Total OI (significance filter)

This is the smarter filter.

• It prevents “big-looking” prints that are tiny compared to the contract’s open interest.
• It surfaces events that are genuinely significant for that specific contract.

If your goal is to identify potential inflection areas, you typically want events that remove a noticeable share of OI — again, not as a promise of reversal, but as a reason to check structure carefully.

A “0.5–2% of Total OI” threshold points to situations where a liquidation removes a noticeable share of open interest in that contract. That’s usually more than routine noise: leverage may have been flushed and the market can pause, after which the price action often shifts into a different regime. It’s not a guaranteed reversal — it’s a cue to check chart structure carefully and execute strictly within your risk rules.

5) Volume-based coin filtering (avoid illiquid traps)

Filtering by volume is how you avoid noise and bad fills.

• High-volume markets tend to produce cleaner signals.
• Low-volume markets can generate “signal-looking” prints that are mostly randomness and slippage.

No time window: how to judge “one-off vs regime”

You don’t need a built-in time window to read flow. The stream itself tells you a lot:

• One print and then silence → often a local release.
• Repeated prints on the same coin → elevated stress in that contract.
• Prints across multiple coins or across both venues → broader regime shift.

The point is to read the character of the flow, not to rely on a fixed time bucket.

Quick pre-trade checklist

Before you even think about execution:

• Does the event pass Min Amount $ and % of Total OI?
• Is it Liq Long or Liq Short, and does price action match?
• Is it one venue or both?
• Do you see structure on the chart (level, retest, range, reclaim/break)?
• What’s invalidation? What’s the risk per trade?

If you can’t answer these, skip. That’s not “missing a trade” — that’s keeping your process intact.

FAQ

Why use both Min Amount $ and % of Total OI?

Because they filter noise in two different ways: absolute size and contract-relative significance.

Does a high % of Total OI mean a reversal is guaranteed?

No. It means the event is large relative to current open interest. Reversals still require chart confirmation.

Why is volume filtering important?

Because illiquid markets produce misleading prints and punish you with slippage. Volume filters keep your feed tradable.

Should I build separate screeners per exchange?

If you want cleaner reads and comparisons, yes. If you want simplicity, start with one exchange and expand later.

Open the liquidations screener, pick Liq Long or Liq Short, set Min Amount $ and % of Total OI, filter coins by volume, and focus only on events with real weight. Then let chart structure and predefined risk rules decide the trade.