What is Leak Detection in Stocks?
Leak detection, also known as "white flags," is a process used to identify potential short squeezes or other types of market volatility. It involves monitoring financial markets and alerting traders when certain conditions are met.
How Does Leak Detection Work?
- Traders monitor financial data feeds, such as those provided by Quandl or Alpha Vantage, to identify potential trends and patterns.
- They also use technical indicators, such as moving averages and RSI, to analyze market activity.
- When a trader believes that a particular stock is in a potential short squeeze, they alert their network of contacts, who may then make trades to exploit the situation.
Case Studies: Successful Leak Detection Tactics
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