After consecutive up days, a 10% drop triggers short-seller restrictions that force shorts to buy on the ask instead of hitting the bid. As prices fall 15-30%, long holders must sell for liquidity, letting short sellers profit from the collapse.
That's why I like multiple green days than just one or two. Or it's like what if we knew 100 new people bought on the first day but then now 300 total people are in and then 500 and then a thousand. Like now you know the overwhelming majority of people are going to be on this red day or this top day that when the red day comes, they're immediately all underwater. And I hate to say it, but like when a stock goes down after it goes down 10% or more is when SSR is triggered short seller restriction. Meaning if you're a short seller, you can't hit the bid anymore. You have to be on the ask and get bought in. Someone has some other buyer or short who's covering has to hit your order to fill. So after a stock has gone down 10% of the more they for it to go negative 15, negative 20, negative 30% a day, you need genuine long spot sellers to sell it down to make money. So that's why these types of moves can be so good. Because you want the most amount of longs at the top who are going to sell and take losses on the actual red day that you're short.
