A long squeeze indeed opens up an opportunity for those who possess a sense of market psychology and a clear-cut strategy. By going short, using put options, or buying the dip, they can possibly make some money on the down price movement. Trading on a squeeze, however, is extremely hazardous and involves very cautious traders. Fundamental analysis, technical indicators, and even market sentiment analysis can help discover long squeeze opportunities and strike the perfect time to make trades.
One learns how to fare well in a long squeeze by disciplining himself or herself to be clear on risk management and able to execute rapidly. Within the general panic of this market phenomenon, for the traders who can recognize the conditions that lead to a long squeeze, there is tremendous reward.