Written by the Tabmydata team. Market data, not advice.
Short answer: a liquidity heatmap shows where real orders rested in the order book over time. A liquidation heatmap shows where a model estimates leveraged positions could be forced to close. One is recorded order-book data; the other is an estimate. Neither tells you where price will go.
The two look alike: price on the vertical axis, time running left to right, bright bands where there is more of something. That is why a liquidity heatmap and a liquidation heatmap get mixed up. What the brightness means is different, and so is how much you can trust each one.
What a liquidity heatmap shows
A liquidity heatmap, also called an order book heatmap, draws resting order-book depth over time. Each price level is coloured by how much size sat there: bright bands are large resting orders, faint areas are thin. Candles run through the picture, so you see price moving through the size that was waiting.
These are real orders that existed on the book at the time they were recorded. They can also be moved or cancelled at any moment, so a bright band tells you where size sat, not that it will still be there or that price will stop at it.
In Tabmydata, the Orderbook Heatmap merges depth across exchanges into one liquidity heatmap and keeps months of history on 93 instruments, across crypto, tokenized stocks and ETFs, and commodities. You can scroll back and see how liquidity built up or cleared last week.
What a liquidation heatmap shows
A liquidation heatmap draws estimated liquidation levels by price over time. A liquidation is the forced close of a leveraged position when its margin runs out. Exchanges don't publish where open positions would be liquidated, so these levels have to be modeled. Brighter bands mean more estimated liquidations at that price.
That makes it an estimate by design. It answers "if price reached this level, roughly how much leveraged exposure could be forced to close there?" It does not show orders on a book, and it is not a forecast.
In Tabmydata, the Liquidation Heatmap is its own tab, and it labels its levels as modeled so you always know what you are looking at.
Which one shows real orders?
The liquidity heatmap. It is drawn from order books that exchanges published and Tabmydata recorded. When you see a bright band on it, that size really was resting at that price at that time. It can be pulled or moved at any moment, but it was real.
The liquidation heatmap shows no orders at all. A liquidation is a forced close, and a position that is still open is not an order on any book. So the bands on a liquidation heatmap are estimates of where positions could be forced to close. They are modeled, and Tabmydata labels them that way.
Exchanges do not publish the price at which each open position would be liquidated. That is why the levels have to be estimated, and why you read them as an area, not a line.
Side by side
| Liquidity heatmap | Liquidation heatmap | |
|---|---|---|
| What it draws | Resting order-book depth by price over time | Estimated liquidation levels by price over time |
| Where the data comes from | Order books recorded from exchanges | A model, because exchanges don't publish liquidation levels |
| Real or estimated | Real orders that sat on the book (they can be pulled) | Estimates |
| Bright band means | Large resting size sat at that price | Many liquidations are estimated at that price |
| History in Tabmydata | Months of history, 93 instruments | Liquidation levels are modeled, so the Liquidation Heatmap is labeled as modeled. |
| Is it a forecast? | No | No |
Are liquidation heatmaps accurate?
They are models, so they are estimates. A model works out where leveraged positions could be liquidated from what it can see of the market. It cannot see every position. Treat a bright band as an area where more liquidations are estimated, not as an exact price.
You can check an estimate against what already happened. Open the live liquidations feed on the same coin. It shows forced closes as they print, longs in red and shorts in green. If liquidations printed near a modeled band, that is one data point. If they did not, that is another. Neither tells you what the next move will be. The feed's totals are a floor, not a total, so a quiet feed does not prove that nothing was liquidated.
How to read them together
Put both tabs in the same workspace, on the same coin and time frame.
- Start with the liquidity heatmap. Find the bands where size has rested for hours or days, and the gaps where the book is thin.
- Look at the liquidation heatmap for the same range. Find where the brightest estimated bands sit above and below the current price.
- Compare the two. Some traders note where resting orders and estimated liquidation levels sit near the same price, and where they don't. That is a reading of the picture, not a signal.
- Check what already happened. The live liquidations feed shows forced closes that actually printed, so you can see whether liquidations occurred where the model estimated them.
The decision is yours. Both tabs describe the market; neither tells you what price will do next.
Months of history or live view?
The Orderbook Heatmap keeps months of history on 93 instruments across crypto, tokenized stocks and ETFs, and commodities. You can scroll back and see how liquidity built up or cleared last week. Liquidation levels are modeled, so the Liquidation Heatmap is labeled as modeled. For the steps, see how to read a liquidity heatmap and how to read a liquidation heatmap.
When traders open each one
- Liquidity heatmap: before a session, to see which levels kept size over the past week; around a scheduled release, to see how the book changed before and after.
- Liquidation heatmap: on leveraged markets, to see where estimated forced closes stack up above and below price.
- Both: to compare where orders rested with where liquidations are estimated, on one coin and one time frame.
Frequently asked questions
What is the difference between a liquidity heatmap and a liquidation heatmap?
A liquidity heatmap shows resting orders that sat in the order book over time. A liquidation heatmap shows modeled estimates of where leveraged positions could be liquidated.
Which one shows real orders?
The liquidity heatmap. It is drawn from recorded order books. The liquidation heatmap shows estimates, not orders.
Are liquidation heatmaps accurate?
They are models. They estimate where leveraged positions could be liquidated, so treat the levels as estimates, not exact prices.
Does a bright band mean price will go there?
No, on either heatmap. A bright band shows where size sat or where liquidations are estimated. It says nothing about what price does next.
Can I see both on the same coin?
Yes. Add the Orderbook Heatmap and the Liquidation Heatmap to one workspace and set them to the same coin and time frame.
How do I learn to read each one?
See how to read a liquidity heatmap and how to read a liquidation heatmap.
Is a liquidation heatmap a liquidity heatmap?
No. A liquidity heatmap shows resting orders that sat in the order book. A liquidation heatmap shows modeled estimates of where leveraged positions could be forced to close.
Is either heatmap a forecast?
No. A liquidity heatmap shows where size sat and how big it was. A liquidation heatmap shows where liquidations are estimated. Neither says where price will go.
Can I see both heatmaps on one screen?
Yes. Put the Orderbook Heatmap and the Liquidation Heatmap side by side in one workspace and set them to the same coin and time frame.
Do the orders on a liquidity heatmap stay where they are?
Not necessarily. Resting orders can be moved or cancelled at any moment, so a bright band shows where size sat, not that it will still be there.