Market Notes｜$DOGE ｜$750,000 in long liquidations
First, the definition: A long liquidation is when a leveraged long position is forcibly closed, usually when prices fall. Short liquidations are the opposite and mostly happen when prices rise.
Next, how to read it: “Longs getting squeezed” refers to a price drop triggering long liquidations, with the resulting sell orders pushing prices even lower. A “short squeeze” is when rising prices trigger short liquidations, and the resulting buybacks push prices higher still.
It’s much more reliable to size your orders based on the distance to your stop-loss than to go by gut feeling.
Just something to look at—don’t copy it. Make your own decisions.
First, the definition: A long liquidation is when a leveraged long position is forcibly closed, usually when prices fall. Short liquidations are the opposite and mostly happen when prices rise.
Next, how to read it: “Longs getting squeezed” refers to a price drop triggering long liquidations, with the resulting sell orders pushing prices even lower. A “short squeeze” is when rising prices trigger short liquidations, and the resulting buybacks push prices higher still.
It’s much more reliable to size your orders based on the distance to your stop-loss than to go by gut feeling.
Just something to look at—don’t copy it. Make your own decisions.
