Timeframe selection is important to trade short squeeze!
What happens in a short squeeze, the short-sellers are under pressure because they are under distress trying to cover their short positions. Along with bargain hunters and active traders wanting to make a profit from the short squeeze, all that combined actions pushes the price even higher.
Time is money! Short traders try to trade carefully and fast. Short traders know that they have to act quickly otherwise the next higher price will be more expensive to cover their short position. However, short traders have to cover their short positions fast but don't want to cover the stocks too fast because that will move the price even faster and that puts short sellers at a disadvantage. Short sellers become long traders once they completely cover their short shares.
Time frame selection is crucial when making a decision to go long or short. When trading a short squeeze, the weekly chart doesn't give the active traders good information. In fact, the weekly chart is useless to active traders because it doesn't provide any information.
Active traders wanting to participate in short squeeze should consider looking at the 15-minutes chart or the 1-minute chart to make their decision to go long or to go short. With the weekly chart, it is impossible to decide the entry or exit price.
Thank you for reading!
Greenfield
This is article #3 on how to trade short squeeze. Remember to click "Like" and "Follow!" to see more articles on how to trade short squeeze.
Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
What happens in a short squeeze, the short-sellers are under pressure because they are under distress trying to cover their short positions. Along with bargain hunters and active traders wanting to make a profit from the short squeeze, all that combined actions pushes the price even higher.
Time is money! Short traders try to trade carefully and fast. Short traders know that they have to act quickly otherwise the next higher price will be more expensive to cover their short position. However, short traders have to cover their short positions fast but don't want to cover the stocks too fast because that will move the price even faster and that puts short sellers at a disadvantage. Short sellers become long traders once they completely cover their short shares.
Time frame selection is crucial when making a decision to go long or short. When trading a short squeeze, the weekly chart doesn't give the active traders good information. In fact, the weekly chart is useless to active traders because it doesn't provide any information.
Active traders wanting to participate in short squeeze should consider looking at the 15-minutes chart or the 1-minute chart to make their decision to go long or to go short. With the weekly chart, it is impossible to decide the entry or exit price.
Thank you for reading!
Greenfield
This is article #3 on how to trade short squeeze. Remember to click "Like" and "Follow!" to see more articles on how to trade short squeeze.
Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.