(binned per thread starter's request) Market bottom rotation trad

Yep SL should be bellow the micro shelf on GU.

In case anyone is still not clear on terms or just to clarify for other newbies:

-clearout is process that is either targeted or non targeted attempt of market to clear the SLs of certain market participants. It happens mostly in condensed structural areas where it is very likely that many traders will place SLs beyond the extremes of highs or lows. For clearout to happen structure must be symmetric, that is a must otherwise chances are that SLs have already been liquidated (for example in structure with low, low, low and then lower low after that its likely SLs have already been liquidated thus expecting clearout in such case would be not likely). Targeted clearout is where large players aim to crush liquidity on demand or supply zone with large order to push price beyond the "defense" zone and seek the liquidity on other side in fuel zone (described on previous pages) and then get a fill of large counter order of their initial large order. Somethimes it happens that demand or supply will "naturally" weaken as the activity dries up and then as price goes beyond into fuel zone the large players will use that as chance to fill their order as SLs get liquidated so that will be non targeted clearout. For a trader that wants to trade clearout it is not likely to spot non targeted clearout other than just guessing it, so therefore aim is to focus on targeted clearout where large player reveals the hand before the actual clearout. For that seek if suddenly price moves in middle of structure with strenght that makes no sense, and where defense of supply or demand suddenly no longer is giving any fight back.
Plenty of previous pictures describe the examples on previous pages.

-Condensed is term that describes a lot of activity in similar price area where there has been no liquidation event happening yet. For example if price keeps bouncing around same price level and respecting that level with precision then liquidation has not yet happened and that means that liquidation is likely to happen if that behaviour is changed by level break. Non condensed supply or demand is where price comes forms a low or high and bounces of and never returns (for a while).
Time is key factor that excelerates the potential liquidation event on condensed structure, that means that very shallow structure with many days passed of price activity in same area is going to have much larger potential for squeeze than deep structure with strong lows and highs that only has that activity for very small amount of time. The longer the time, the more participants will be drawn in, the less the price has changed, the more participants will react around same price area, that means that most of those will not be able to exit on preffered price without triggering strong sharp move. See previous page for examples on short squeezes.

-Symmetry is term describing similar behaviour repetition of asset. For example if price bounces 5 times from the same price level each time with similar strenght then that points to symmetry of behaviour. Symmetry is not by default only mathematically connected, it is more important to observe behaviour rather than maths. Putting that behaviour in correct context is therefore needed.

you're too kind Jan, thanks
good trading to you

Whops got busy writing, missed EURUSD takeout.

So, how do you filter from within about 5000 stocks - making the proper symbols watch list that is?

As simple as that (you can use any other software all softwares for equities have % change filter, in TC2000 you can also make your own custom filters to even more fit that asset towards your prefferences):

Or optionally adding also float to have better precise scan. Also some softwares have short interest directly built as scan function, TC2000 no longer has that. Also some have direct gap % change as function too.

DE30 .

AVGR on focus.
Most likely not a strong upside potential due to no short positioning, however if it runs ill look for short play.

good setup worth to mention

Tracking CVX.

Didnt get a fill on long. No trade.

Tracking GBPJPY.

Last minute kill for +1R.

Thanks, I would probably have to switch to windoze again (on Linux now since 10 years, never looked back..) in order to use TC2000. I'll try to find something similar.

Proper rebel

Short squeeze or a consistent increased demand for asset

Potential short squeeze is traded on both long and short side, while strong rallies based on increased demand or float rotation are traded on short side only. The point if trading squeeze on short side is that after liquidation is baked price should return back as no further demand can keep it up due to bad long term balance sheet or economic outlook of asset. A strong rally on demand on same type of asset should also have similar result of price returning back down due to either profit taking, or long term negative factors weighting on price. Both moves are played short but only potential short squeeze is played long on the base of the move or with further micro setups along the upward move.
Usually becouse those stocks will have low float, there will be irrationally strong move relevant to news release (news only slightly bullish but move will be large).
Playing towards short side is always going to be much easier, because one can simply click on % change filter check if anything has poped 100% today and then if it is low cap stock check its charasteristics to see if it fits a play.On long side catching a short squeeze takes more preparation.
Any asset after short squeeze is baked should be added to watchlist and being traded continiously on short side until the price corrects fully the whole upwards move.
In some cases price will correct fully in a day and in some it will take weeks. Very important: Never hold shorts over night. Always approach each day with micro play never hold large short position over night on equity markets. Somethimes equities that had large squeeze will had agressive shorts coming in and those will be further squeezed somethimes causing large gap open on market open, if your short overnight it could be dangerous because in equitiy trading its possible to get in debt with broker trading short, losing more than just full account. Therefore rule is to always close positions, unless they are very small so that 100% gap up would not hurt you bad. This is my own rule, obviously many traders do not respect that rule or use it, thats up to every individual to asses what he is willing to risk.

It can be tempting to hold shorts overnight on short squeezes since statistically majority of those move will eventually go all the way down, but every 20th squeeze will keep squeezing until asset squeezes every over night position.

For short entry there are three types of entry types:
-demand takeout or continuation short setup
-parabolic bull move with heavy rejection
-strong rejection after bullish move

ZSAN, example of move without any news.




TENX


FTFT



ACHV


RCON

PTIE



DELT , no strong short interest, therefore clean demand on the equity , but it still corrects on the short side fully.


HGSH



SGLB




LENS

Obviously very low liquid markets today, unlikely anything will pop up.

Its Easter. We are in the eggs business