Bojack Buy Liquidation

Liquidation Bubbles detects exactly this condition by:

* Estimating a **dynamic equilibrium price** using an *inverted volume-weighted moving average*
* Measuring **directional price stress** relative to that equilibrium
* Measuring **volume stress** relative to its own adaptive baseline
* Normalizing both into **Z-score–like metrics**
* Highlighting only **statistically extreme, asymmetric events**

The result is a clear visual map of stress points where market participants are most vulnerable.

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⚙️ Methodology (How It Works)

1️⃣ Advanced Inverted VWMA (Equilibrium Engine)

The script uses a custom Advanced VWMA, where:

* High volume bars receive less weight
* Low volume bars receive more weight

This produces a **robust equilibrium level**, resistant to manipulation and volume bursts.

This equilibrium is used for **both price and volume normalization**, creating a consistent statistical framework.

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2️⃣ Price Stress (Directional)

Price stress is calculated as:

* The **maximum deviation** between high/low and equilibrium
* Directionally signed (upside vs downside)
* Normalized by its own historical volatility

This allows the script to distinguish:

* Aggressive upside exhaustion
* Aggressive downside capitulation

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3️⃣ Volume Stress

Volume stress is measured as:

* Deviation from volume equilibrium
* Normalized by historical volume dispersion

This filters out:

* Normal high-volume sessions
* Illiquid noise

And isolates abnormal participation imbalance.

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4️⃣ Liquidation Logic

A liquidation event is flagged when:

* Both price stress and volume stress exceed adaptive thresholds
* The imbalance is directional and statistically extreme

Optional Combined Score Mode allows aggregation of price & volume stress into a single composite metric for smoother signals.