/**
* Liquidation Indicators
* Detect liquidation clusters, stop hunt zones, safe entry zones
*/
/**
* Find liquidation clusters
*/
function findClusters(liquidationData, currentPrice) {
const allClusters = liquidationData.clusters || [];
const longClusters = allClusters.filter(c => c.side === 'long');
const shortClusters = allClusters.filter(c => c.side === 'short');
// Find nearest cluster
let nearest = null;
let minDistance = Infinity;
for (const cluster of allClusters) {
const distance = Math.abs(cluster.price - currentPrice) / currentPrice * 100;
if (distance < minDistance) {
minDistance = distance;
nearest = cluster;
}
}
return {
long: longClusters,
short: shortClusters,
nearest: nearest || null,
distance: isNaN(minDistance) || !isFinite(minDistance) ? 100 : minDistance
};
}
/**
* Detect liquidity grab zones
*/
function detectLiquidityGrab(liquidationData, currentPrice) {
const clusters = liquidationData.clusters || [];
// Liquidity grab: large cluster just above/below current price
// Market makers will push price to grab liquidity before reversing
let detected = false;
let zone = null;
let side = 'none';
for (const cluster of clusters) {
// Check if cluster is within 2% of current price
const distance = Math.abs(cluster.price - currentPrice) / currentPrice * 100;
// Check if cluster size is significant (estimate from long+short liquidations)
const totalLiquidationEstimate = liquidationData.longLiquidations24h + liquidationData.shortLiquidations24h;
if (distance < 2 && cluster.size > totalLiquidationEstimate * 0.05) {
// Large cluster nearby = liquidity grab zone
detected = true;
zone = {
priceLow: cluster.price * 0.995, // 0.5% below
priceHigh: cluster.price * 1.005 // 0.5% above
};
side = cluster.side;
break;
}
}
return {
detected,
zone,
side
};
}
/**
* Predict stop hunt
*/
function predictStopHunt(liquidationData, currentPrice) {
const clusters = liquidationData.clusters || [];
// Stop hunt: price moves to trigger liquidations, then reverses
// Look for large clusters just above/below current price in trending direction
let predicted = false;
let targetPrice = null;
let side = 'none';
// Find largest cluster within 5% of current price
let largestCluster = null;
let largestSize = 0;
for (const cluster of clusters) {
const distance = Math.abs(cluster.price - currentPrice) / currentPrice * 100;
if (distance < 5 && cluster.size > largestSize) {
largestSize = cluster.size;
largestCluster = cluster;
}
}
// Check if cluster size is significant (estimate from long+short liquidations)
const totalLiquidationEstimate = liquidationData.longLiquidations24h + liquidationData.shortLiquidations24h;
if (largestCluster && largestCluster.size > totalLiquidationEstimate * 0.03) {
// Large cluster nearby = potential stop hunt target
predicted = true;
targetPrice = largestCluster.price;
side = largestCluster.side;
}
return {
predicted,
targetPrice,
side
};
}
/**
* Assess liquidation cascade risk
*/
function assessCascadeRisk(liquidationData, currentPrice) {
// Cascade risk: if price hits large liquidation cluster, it could trigger chain reaction
const clusters = liquidationData.clusters || [];
const nearbyClusters = clusters.filter(c => {
const distance = Math.abs(c.price - currentPrice) / currentPrice * 100;
return distance < 3; // Within 3%
});
let risk = 'low';
let triggerPrice = null;
if (nearbyClusters.length === 0) {
return { risk: 'low', triggerPrice: null };
}
// Calculate total liquidation size nearby
const totalSize = nearbyClusters.reduce((sum, c) => sum + c.size, 0);
// Estimate OI from total liquidations (24h liquidations typically represent 2-5% of OI)
const oiEstimate = (liquidationData.longLiquidations24h + liquidationData.shortLiquidations24h) * 20; // Rough estimate
// High risk if nearby liquidations > 5% of estimated OI
if (totalSize > oiEstimate * 0.05) {
risk = 'high';
// Find nearest large cluster
const nearest = nearbyClusters.reduce((prev, curr) => Math.abs(curr.price - currentPrice) < Math.abs(prev.price - currentPrice) ? curr : prev);
triggerPrice = nearest.price;
}
else if (totalSize > oiEstimate * 0.02) {
risk = 'medium';
const nearest = nearbyClusters.reduce((prev, curr) => Math.abs(curr.price - currentPrice) < Math.abs(prev.price - currentPrice) ? curr : prev);
triggerPrice = nearest.price;
}
return {
risk,
triggerPrice
};
}
/**
* Identify safe entry zones
*/
function identifySafeEntryZones(liquidationData, currentPrice) {
// Safe entry zones: areas with low liquidation density
const safeZones = liquidationData.safeEntryZones || [];
// Calculate confidence: distance from nearest liquidation cluster
// const clusters = liquidationData.clusters || []
const nearestDistance = liquidationData.liquidationDistance || 10;
// Confidence increases with distance from liquidation clusters
const confidence = Math.min(1, nearestDistance / 10); // 10% distance = max confidence
// If no safe zones provided, create default zone around current price (if safe)
let zones = safeZones;
if (zones.length === 0 && nearestDistance > 3) {
zones = [{
priceLow: currentPrice * 0.99, // 1% below
priceHigh: currentPrice * 1.01 // 1% above
}];
}
return {
zones,
confidence: isNaN(confidence) ? 0 : confidence
};
}
/**
* Calculate liquidation indicators
*/
export function calculateLiquidationIndicators(liquidationData, currentPrice) {
// Add openInterest to liquidationData if needed for calculations
const clusters = findClusters(liquidationData, currentPrice);
const liquidityGrab = detectLiquidityGrab(liquidationData, currentPrice);
const stopHunt = predictStopHunt(liquidationData, currentPrice);
const cascade = assessCascadeRisk(liquidationData, currentPrice);
const safeEntry = identifySafeEntryZones(liquidationData, currentPrice);
return {
clusters,
liquidityGrab,
stopHunt,
cascade,
safeEntry
};
}
