so you probably have heard the term short squeeze and you're wondering what
is a short squeeze what causes a short squeeze well it's very simple
stay tuned so taking a look here at MBR X huge short squeeze this morning and
you're like well how do you know it's a short squeeze well I can tell you why
it's a source reason why it happened so looking at the morning this morning you
can see it opened up didn't do much could not go above this red to green
area couldn't get above a two-dollar area and got kind of held down for a
while well what happened is you get all these shorts piling in here they're like
okay this is going to break this support there the dollar ad is going to break
and once that breaks this is going to sell off and going to crash crash crash
it holds here at a dollar eighty support holds from a 930 drops down a dollar
eighty tries to get above two dollars can't move and then all of a sudden need
all these shorts piling in here all these shorts are sorting it attitude all
others are shorting it here they're sorting it here thinking it's going to
crash down so you have all the amateurs who ended up shorting here they ended up
covering they might have covered here at the bottom when it couldn't break a
dollar eighty but still total people held on and they are hoping that this
would go higher well it starts to go higher so goes higher our people will
cover once it starts that once the buying from covering stops it starts to
drop back down everybody okay well now it's dropping I'm gonna short it again
I'm going to short it for the hope this is going to break under two dollars and
start really crashing back down to that 180 area so again people start shorting
here is short on this channel they start here at $2 right in that area and what
happens is again you build support two dollar area support the view app is
right there the moving average everything was right here at $2 so it
was holding strong it couldn't break this is definitely gonna break through
$2 once it breaks through $2 a view apps going to break this is going to get back
down to that dollar eighty I can grab 20 cents here I can cover there a dollar
eighty worse from the worst you know what's what's the worst thing that this
drops a dollar eighty it bounces I can cover it make some profit there well
what happens is higher lows higher lows higher lows and then you have some
support here at the two of five area you're like shit this doesn't want to go
so again you got people shorting here to 13 double top people are like okay to 13
this is not going higher double top this is this is the time that's going to sell
off you can see the volume disappears there's no volume on the chart there on
this candle alone you get 22,000 she related and it's like okay this is
definitely done now game's over sorry about you and you
can see here bulls are a little bit it holds 205 again and then once 205 holds
you get this back above to 13 and you can see to 12 doesn't want to break well
once to 12 breaks to get us push to 220 so you can see they're shorts covering
but still not enough volume not enough to really send us higher and then all of
a sudden boom boom boom boom boom boom boom and the panic begins once we get
above high of day the panic begins also people are probably going to short
it at the high a day thinking that it's going to be a double top it's going to
crash so you get more shorts piling in you have all these shorts they're
probably covered by now but then you have all these shorts that are piling in
here because they're like this is going to crash you have people who are
doubling up who are thinking this is going to go lower and lower some point
they're like this is going to crash it's got a crash it's already up 40% it's
kind of crash there's no way this is not going to crash right the buyers start
stepping up the volume increases and then you get to stay everybody running
out the door it's literally everybody just running to get out the door on this
and you can see here once that to that high of de 220 breaks you get a break of
that again you get all the way to 31 - 31 - 37
get a little bit of pull back here you know building some consolidation you can
see 200,000 shares traded there but not much movement so from - 28 to 34 so you
get a nice and solid ation there and it moves sideways for a little bit there in
the five minutes and then all of a sudden BAM again you get another squeeze
and then look at this volume so here it breaks through the 250 area jumps up
there - 69 tons of volume fills and their biggest can all today I'm some
million shares traded the shorts are squeezed they are shitting their pants
and like god I got a I'm going to they're either going to double up here
they're going to think they're going to average up once again or they're going
to start covering and I'm thinking that most of them covered here they're going
to cover into this and then you got people who are going to short it once
again they're like okay this I covered earlier this is things going higher
that's going to crash at some point this I'm going to start shorting it again so
people start shorting it again here at 275 once it show some weakness and then
again you get this little spike down and like yes it is over I won this the
squeeze is over we're going to win the shorts are going to crash this back down
or two dollars I'm making so much money well shit all of a sudden more buying
happens and you get it extended its extended so people are like well I'm for
sure going to squeeze this and going to crash and then I'm going to
make some money here and you can see it runs out the 284 there that's the
mindset so as a short I'm looking at this I'm looking at every top and I'm
going to store every top with the idea that it's going to crash and I have my
stop above that top so if you know the tops here is at 217 I'm going to short
here at 213 I'm watching at 217 areas to cover
what's the 217 area brakes I'm probably going to cover because I'm scared to
spine squeeze and that's what happened so then again you know I shorted here at
237 I'm like okay that's the high of days 237 I'm going to sort it there at
2:30 I'm going to cover there at a 240 area if this really wants to squeeze
again and BAM again same thing happens and then here on this just get a ton of
volume there everybody who thought they could hold this one they thought 250
would be resistance their mental resistance there 250 it gets squeezed
and it jumps up there that's the source we that's the mentality that's the great
thing about when you actually learn to short stocks you start to learn where
people might cover it so if I'm trying to go long in the stock and I'm sitting
here and I'm okay this looks pretty good at 205 if I can get in at 205 and it
might squeeze so if I get up in at the 205 area and then all of a sudden we get
a squeeze here I think the shorts are going to start
covering at the new high of day area and then if we get that kind of chain
reaction we'll get more people buying more people buy and then we're getting a
nice squeeze and that's kind of how I think about it so I'm thinking about it
as a short even when I'm going along so I'm just thinking about it both ways how
is a short going to play this and then also I think about it when I go short
how would I play this as a long so if I short this at 2:13 obviously I'm going
to think well shit if 205 support holds that's a bad sign because if I was long
I would probably go in here at the 205 sport for a look to go higher it's
really important to understand both mentalities you can understand bears you
can understand Bulls you can remember both bears and Bulls are trying to make
money but the idea is that we're fighting each other in the sense that we
want this up one person wants to talk to down or someone stock go up and there's
a certain area so when you're playing those support resistance areas you're
just playing the reverse if I'm short I'm looking for that support to break if
I'm long I'm looking for that support to hold it's very clear here on this chart
here on MVR X this is a clear short squeeze and just a bad bad day if you're
short here on MVR X I know I saw a couple people in a chat room actually
talking about how they were sorting this out
theory and I told all that you guys should be careful here could be bad if
this 205 area doesn't want to break I can see the squeezing up pretty big and
it ended up squeezed not pretty big I actually went to lunch came back here
and saw that it was up to 85 so the idea let you know it's sometimes cool just to
break down these moves you get an idea of these kind of moves and the mentality
if I'm a short where am I going too short where am I going to cover if I'm a
long where am I going to enter and where am I looking take profit so kind of same
same thing so you got to kind of have that mentality thinking both sides of
the trade and always be ready if I see a long opportunity that becomes a short
I'm not going to marry the idea I'm not going to marry the idea that stock is
going up I'm going to see it from all different point of views hopefully this
video helps you guys trade these short squeezes a little bit better and gives
you guys an idea when you are short when you might want to cover or if you're
going along on a short squeeze when you might want to take profit hopefully you
enjoyed the video