Typical Crash Model Interpretation

1. Price rises, open interest continuously decreases. Here, a detail needs to be noted: check the 1H trading data. The smaller the timeframe, the harder to determine the main force's intent.
2. The price is pushed up, and contract holdings decrease for several hours in a row. This is a premeditated behavior before a crash.
3. The main force closes all long positions at high levels, then supports the price to find counterparties, encouraging retail traders or electronic trading to go long for arbitrage. With counterparties in place, they can quietly add short positions. Once the short positions are fully laid out, they remove the support orders, then push the price down, continuing to add shorts while crashing. This process continues until the final collapse.
Actually, this kind of typical harvesting target is not retail traders but institutional electronic trading. Retail traders are just collateral damage. My own short positions are not large; they are mainly for testing, learning, and summarizing. I post my personal summaries on X as trading notes for everyone to learn from.
Feel free to add your insights #Bulla