The Liquidity tool has both long and short predicted liquidation levels, at the key x3, x5 and x10 liquidation levels. Historically, when price has entered these levels we have seen an escalation in the move as positions are either liquidated or stops are triggered.
The areas of high liquidations count are price levels with significant liquidity, that typically the market will trend towards. It is important to note that each bar does not represent an exact number of liquidations, but is a count relative to the other liquidation levels. Therefore it shows how likely it is that the market will be affected by the liquidations and liquidity there. Price action will often tend to trend towards large areas of liquidity as this is where whales in the market are able to sufficiently fulfill their orders. Once a large liquidation level or cluster of levels has been cleared, this can often market a local top or bottom.