WHAT IS A STOCK SHORT SQUEEZE? $MBRX - YouTube

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