When price hits a bullish key level in a bullish market, short traders' stop-losses trigger all at once, forcing them to buy back. That cascade of forced buying combines with aggressive buyers already in the market, creating a sharp upside move. Recognizing this pattern lets you anticipate the move without complex analysis.
I don't really care if I'm right or wrong because I've been able to get in right when I had a very high probability we're going to have a quick move. Now, why? Well, because if we look that we're hitting into a bullish key level in a bullish market and we saw a lot of sellers betting the market was going to go down, we are coming up to an area where we were proving all of these sellers wrong. So they're in these sells, they're going to want to exit if they're underwater, they're going to— their stop losses are going to be getting hit. So that's like buys on the market with these already aggressive market buyers. In that situation, there's going to be a lot of buying pressure and we want to see price make a big pop to the upside.
