$APR ｜Breaking through the 0.08 level
Before looking at capital flows, first understand round-number levels.
The more often a price level is tested, the more prominent it usually becomes in traders’ minds. However, some say repeated tests can also consume the resting orders there.
Volatility can increase near these levels, so leveraged trades need more room. A stop-loss placed too close to a round number can easily get swept out in a single move.
Understanding this indicator is about avoiding being misled by a single number, not using it to predict tops and bottoms.
#APR
For record-keeping only. Not trading advice.
Before looking at capital flows, first understand round-number levels.
The more often a price level is tested, the more prominent it usually becomes in traders’ minds. However, some say repeated tests can also consume the resting orders there.
Volatility can increase near these levels, so leveraged trades need more room. A stop-loss placed too close to a round number can easily get swept out in a single move.
Understanding this indicator is about avoiding being misled by a single number, not using it to predict tops and bottoms.
#APR
For record-keeping only. Not trading advice.