## Heatmap designation on the chart
The heatmap shows exactly where and in what volume liquidity is hidden **liquidity** in the form of stop orders:
* **Purple stripes** below the price - stop orders of those who are in long positions
* **Purple stripes** above the price - stop orders of those who are in short positions
* **Bright purple stripes** - the maximum concentration of stops, which acts as a strong magnet for the price
{% tabs %}
{% tab title="Long stop-losses" %}
In the example we see places where small market participants have hidden their **stop-losses** small market participants - behind local lows. Purple zones below the current price show clusters of stop-losses of those who opened long positions.
This is exactly where the price will aim on the next decline to trigger those stop-losses.
After reaching these zones a reversal upward is likely, which can be used to open a long position.
{% endtab %}
{% tab title="Short stop-losses" %}
In the example we see places where small market participants have hidden their **stop-losses** small market participants - behind local highs. Purple zones above the current price show clusters of stop-losses of those who opened short positions.
This is exactly where the price will aim on the next rise to trigger those stop-losses.
After reaching these zones a reversal downward is likely, which can be used to open a short position.
{% endtab %}
{% tab title="Maximum concentration of stop-losses" %}
In the example we see **bright purple line** - this is the maximum concentration **of liquidity**, which will act as a strong magnet for the price.
When reaching **the purple** line a reversal is most likely.
{% endtab %}
{% endtabs %}
## Applying the heatmap in trading
Price always moves toward zones with high **liquidity**, here it is easier for big players to accumulate or realize positions - they move the price into these zones to "take" stops from weak traders.
* Identify the nearest clusters **of liquidity**, to play proactively and trade in its direction
* When the price takes all the **liquidity**, it reverses - use these zones to accumulate positions and take profits
* When **of liquidity** a lot accumulates, a cascade effect is possible - the price will accelerate, taking stops until it collects everything - after that it will reverse
* Do not place your stops in the liquidity cluster zone - otherwise you will become the liquidity
{% hint style="success" %}
First of all, try the simplest [a trading strategy with liquidity](/faq-en/simple-strategies.md#strategiya-torgovlya-ot-likvidnosti) from the indicator developer
{% endhint %}
{% tabs %}
{% tab title="Identifying strong targets" %}
In the example we see how the price covered the accumulated **liquidity** and formed an entire "pool" of new **of liquidity** (longs' stops), which will act as a strong magnet for the price.
{% endtab %}
{% tab title="Going for the targets" %}
In the example - the same chart a few hours later. We see how after the acceleration the price reversed and went after the **liquidity** from below.
If you combine the analysis **of liquidity** with levels, you can with high probability accurately determine where the price will bounce off the level and where it will go.
{% endtab %}
{% endtabs %}
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