🔴 Short Liquidations — Trading Context
What it means: Traders who are short (betting price goes down) get liquidated when price rises to their level.
Market effect: When price reaches a short liq cluster, those forced buy-backs accelerate the move UP — like rocket fuel.
MEGA Strategy: Strong resistance above → if breached, explosive short squeeze rally. Watch for fake-out then reversal.
Entry idea: Buy breakouts above a dense short liq cluster. Ride the short squeeze momentum.
🟢 Long Liquidations — Trading Context
What it means: Traders who are long (betting price goes up) get liquidated when price drops to their level.
Market effect: When price reaches a long liq cluster, forced sell-offs push price further DOWN — can create cascading drops.
MEGA Strategy: Strong support below → if breached, cascading long liquidation waterfall. High-risk, high-reward short zone.
Entry idea: Wait for price to sweep a long liq zone then bounce — enter longs on the reversal wick.