(Page 4 - Short Squeeze Analysis)

Title: The difference in volume and price of different market types in actual combat. How to judge and operate the long market and short market?

3. Short squeeze:

1. Stochastic indicator assists in judgment:

The KD value will remain above 80 and last for more than 3 days to form a high-grade passivation phenomenon, as shown in the purple box in the picture.

2.Purpose of disc shape:

When investors are so washed up by the shock market or the long market that they feel they have given up hope and believe that the market is about to turn into a bear market, they will start to short-sell. At this time, the short orders will continue to accumulate and increase.

The purpose of the short squeeze is very simple, which is to cleanse the air force + other short squeeze investors, and use the accumulated short orders as fuel for the rise to continue to squeeze upwards and rise rapidly.

During the short squeeze process, short sellers are forced to cover their purchases, so the upward force is the covering and buying force of the surrender of the Air Force. As long as investors continue to short, the price will continue to deviate and rise.

3. Volume-price relationship:

In the process of squeezing shorts, just like squeezing longs, volume and price will continue to diverge, and all indicators will basically be passivated and ineffective, so the change in operational chips will be the focus of analysis.

Please pay close attention to "the changes in the chips of the main whales" and "whether the air force surrender volume appears", as well as "whether the short orders continue to be replenished" to judge whether the short squeeze fuel is sufficient.

As long as investors continue to short-sell to replenish fuel and the air force surrender volume does not appear, commodity prices can continue to rise.

In addition, in the chip analysis, you should pay attention to whether the main whale continues to ship large quantities during the short squeeze. If the main whale continues to ship during the short squeeze, or the surrender volume of short covering appears,

This will also be the end of the rapid rise in short squeezes, so we should pay attention to the rapid downward correction that will follow.

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Complete.

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