The Short Squeeze & Long Liquidation Explained - Trade Strategies | Axia Futures

FREE Workshop:
👉 go.elitetrader...
What is a short squeeze and a long liquidation? How do they occur, and more importantly, how do you make money from them? This trading strategy session with Brannigan answers these questions and defines the strategy while using multiple examples from various markets.
The textbook definition of a short squeeze is: a rapid increase in the price of an asset when there is a lack of supply and excess demand. The squeeze results from short sellers covering their positions in the asset and leads to buying volume that drives the price higher.
One of the key ideas to trading a short squeeze (or long liquidation) is that given that nothing has changed fundamentally in the context of a large price movement, we should then see a mean reversion in the asset's price. Brannigan illustrates the trade strategy further using examples in the VW stock, the XIV (which no longer trades), the US T-Note, Italian BTP, and the US 2-10 yield curve.
Learn more about our 8-Week Career Trading Course and get 3 Mentored Trading Lessons FREE:
AxiaFutures.co...
All of our traders use TT for fast and efficient execution on the DOM.
Try the TT platform free for 4 weeks:
www.TradingTec...
Axia Futures engages in Developing World Class Traders Globally.
Follow us at:
Website: www.AxiaFuture...
Facebook: / axiafutures
Twitter: / axiafutures
Instagram: / axiafutures

[@koonsickgreen6272]

Oh man. Very very sensible explanation

[@AxiaFutures]

Thanks!

[@Waleedhad]

I learned what a short squeeze is the hard way, then came to check out this video hahah

[@R_radu]

Loved it!

[@wntu4]

There is an AMAZING story behind this. Google 'Volkswagen Infinity Squeeze' and learn about one of the greatest trades of all time.

[@wntu4]

Wow. So it gaps up ~125 E, closes at ~940ish the next day THEN gaps back down ~430 E? I have to wonder how many suicides resulted.