Market Notes | $ETHFI | Breaking above the 0.7 level
Definition: There are often plenty of stop-loss orders clustered around key levels. If the price moves past one, those stops can be triggered all at once, causing volatility to spike suddenly.
A common way to read it: Many traders use key levels as anchors for managing positions. Which side of the level they hold a position on and where they set their stop-losses are often more practical considerations than predicting the direction.
Learning to read indicators is easy; the hard part is sticking to your plan when the market is at its most volatile.
Shared for personal purposes only, not as a recommendation to trade.
Definition: There are often plenty of stop-loss orders clustered around key levels. If the price moves past one, those stops can be triggered all at once, causing volatility to spike suddenly.
A common way to read it: Many traders use key levels as anchors for managing positions. Which side of the level they hold a position on and where they set their stop-losses are often more practical considerations than predicting the direction.
Learning to read indicators is easy; the hard part is sticking to your plan when the market is at its most volatile.
Shared for personal purposes only, not as a recommendation to trade.