liquidation candle

What is a liquidation candle?

A liquidation candle is a term used in trading to describe a large and sudden drop in the price of an asset, typically a cryptocurrency or a stock, that triggers a wave of selling by traders who had previously taken long positions (bought the asset in the expectation that its price would increase). When the price of the asset drops rapidly and reaches a certain threshold, traders who had taken… Read More »What is a liquidation candle?