Long liquidation
Volume Profile Analysis glossary · Profile Shapes & Distributions
Definition
Aggressive selling driven by long-position holders forced to exit, not by genuine new bearish conviction. Often produces b-shape profiles and ends with absorption at the lows.
Long liquidation in plain English
A "long" is someone who bought expecting the price to rise. Long liquidation is when a wave of those buyers is FORCED to sell — because they're losing money and bailing, or their broker automatically closes them out — not because anyone genuinely turned bearish. It's like a crowded theater emptying not because the movie got scary but because someone yelled "fire" and everyone rushed the exit at once. This forced selling often leaves a lopsided, bottom-heavy volume shape (a "b-shape") and tends to end when fresh buyers quietly step in at the lows and soak up ("absorb") all that panicked selling.
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