CRITICAL INSIGHTS ON VOLATILITY MECHANICS
⚠️ Understanding Open Interest and Liquidations separates winners from noise. These mechanics drive the most violent market spikes.
• Open interest shows open leveraged positions.
• Rising OI during sideways action signals building pressure for a massive move.
• Liquidations are forced closes that trigger violent chain reactions—waterfalls down or explosive squeezes up.
• Entering after a mass liquidation chase is often a trap; the fuel for the move is spent.
Patience is key. Watch for stabilization after the forced exits fade to find real conviction plays. Survival first, profits follow.
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