Volume spike with "body not following" short squeeze/long squeeze strategy

Logic:

If a long shadow appears + volume spikes, but the body is very small, it indicates that a large amount of transactions occurred in the shadow area, which is an extreme release of emotion. This type of trend often reverses.

Approach:

Volume spike with long lower shadow, small body → Go long

Volume spike with long upper shadow, small body → Go short

Use the extreme points of the shadow as stop loss

Advantages: Very small stop loss, high cost-performance ratio.