Liquidation Dominance

Which side (long or short) lost more to liquidations over a period, e.g. 24h.

Liquidation dominance compares the USD totals of liquidated longs vs shorts. 80% long dominance means the market was falling and force-closing bullish positions, a picture of selling pressure that already happened. Short dominance accompanies sharp rallies (short squeezes). It is descriptive, what happened, not predictive, though the exhaustion of a liquidation cascade has historically often marked a calming point.

In plain words

A simple scoreboard: who got knocked out of the market more today, bulls or bears. A big skew shows which way the market steamrolled leveraged traders.

Example

Over 24h, $120M of longs and $30M of shorts were liquidated, 80% long dominance. The market was falling, forcing closures. Once the cascade fades, that liquidation-driven sell pressure disappears.

Also known as: dominacja likwidacji, liquidation dominance, домінація ліквідацій

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