Strong liquidation and reversal radar
For data like this, first see who is forced out.
$QNT short sellers being squeezed out looks more obvious, but the first candle after the long liquidation isn’t equal to the trend; what matters more is whether the pullback fails to break.
$W short sellers being cleared is more concentrated—price is likely to first surge for a stretch, then when you look for a pullback, see if there’s buy-side strength to keep pushing.
$SOON this segment is mainly the shorts passively covering; don’t treat the speed of the squeeze you see as the trend directly.
When liquidation accounts for a lower share of the trade volume, the effect of the cover is usually limited to that segment’s trading activity.
For data like this, first see who is forced out.
$QNT short sellers being squeezed out looks more obvious, but the first candle after the long liquidation isn’t equal to the trend; what matters more is whether the pullback fails to break.
$W short sellers being cleared is more concentrated—price is likely to first surge for a stretch, then when you look for a pullback, see if there’s buy-side strength to keep pushing.
$SOON this segment is mainly the shorts passively covering; don’t treat the speed of the squeeze you see as the trend directly.
When liquidation accounts for a lower share of the trade volume, the effect of the cover is usually limited to that segment’s trading activity.