Ironically, the completion of a short squeeze generates excellent conditions for short sales. As upside momentum fades, supply-demand imbalance shifts to the sell side so market players can reverse the short-term trend. Using Fibonacci retracements, traders can measure a squeeze better than their competition. This forced rally shouldn't carry beyond 62% of the prior fall without real buyers.

Don't chase a rapid decline with a market order. Without up ticks, you can get crushed on a bounce just after getting filled. Safe exits vanish and risk escalates dramatically when chasing downside momentum. The best strategy is to avoid short sales entirely during the selloff and wait for the market to bounce up to resistance, before taking action.

Low risk short sales appear when price constricts into a tight range, and volatility falls off. Take a short position within this quiet zone while random up ticks allow easy entry. When the trade works, price will sell off very quickly. But exit immediately if the market moves against your position. This trade has an excellent reward:risk profile when other factors support the decline. Even without cross-verification, you'll know immediately when the trade fails and can cut your losses economically.