Shorts29 Dec 2023 15:10
“Another technical indicator that traders monitor is what is known as “days to cover.” It is a metric derived from comparing the total short-selling interest in a stock to its average daily trading volume.
The computation indicates the theoretical number of days, assuming average trading volume, that it will take for those who sold short to cover – exit – all of their positions. The higher the days to cover number is, the more prone the stock will be to a short squeeze.“