Honestly, don’t be fooled by the calm of this chart— the explosive fuse has already been lit. $LIT I’ve been watching it for days. This upswing isn’t the kind of brainless surge weak rebound; structurally, it’s clearly the amount created by shorts being passively forced to cover. When trading, the biggest fear is a false breakout. But this time, on the four-hour timeframe, consecutive closes have all held above the moving average line. The pullback strength has been getting weaker each time. This isn’t a pattern that retail traders can build up. I believe the cost-effectiveness of this short setup is already extremely low.
Don’t look at how slowly the price is moving now—the liquidation prices of those heavily short players are hanging right overhead. Every small step up expands their unrealized losses by another round. In a position like this, shorts either voluntarily cut and admit defeat, or they get liquidated by the market. No matter which path, it’s fuel for our side. We often say in our circle: as long as the shorts don’t die, the longs won’t stop. The current setup is a textbook squeeze structure— the risk-reward ratio just doesn’t make sense. Some people might say volume hasn’t caught up. I’d ask in return: if you really wait for a huge burst of volume, the price will already have flown— can you still catch it and get back in?
The shrinking-volume pullback right now is actually a good sign. It shows selling pressure is dying out; the sell orders are already running dry. We don’t need to guess where the top is—we only need to understand that shorting from this position is like going against the trend to catch a falling knife. Just observe and follow the direction of the money flow. Once this sentiment “gate” opens completely, the follow-on funds will help raise the sedan for us. Just be patient and watch the show.
Gaze at the vastness of mountains and seas, and perceive the market’s smallest movements.
Travel with Uncle Xiong, and witness天地盈亏—where gains and losses play out.
#LIT
Click below to trade 👇
Don’t look at how slowly the price is moving now—the liquidation prices of those heavily short players are hanging right overhead. Every small step up expands their unrealized losses by another round. In a position like this, shorts either voluntarily cut and admit defeat, or they get liquidated by the market. No matter which path, it’s fuel for our side. We often say in our circle: as long as the shorts don’t die, the longs won’t stop. The current setup is a textbook squeeze structure— the risk-reward ratio just doesn’t make sense. Some people might say volume hasn’t caught up. I’d ask in return: if you really wait for a huge burst of volume, the price will already have flown— can you still catch it and get back in?
The shrinking-volume pullback right now is actually a good sign. It shows selling pressure is dying out; the sell orders are already running dry. We don’t need to guess where the top is—we only need to understand that shorting from this position is like going against the trend to catch a falling knife. Just observe and follow the direction of the money flow. Once this sentiment “gate” opens completely, the follow-on funds will help raise the sedan for us. Just be patient and watch the show.
Gaze at the vastness of mountains and seas, and perceive the market’s smallest movements.
Travel with Uncle Xiong, and witness天地盈亏—where gains and losses play out.
#LIT
Click below to trade 👇