Just saw: $BTW fell below the 1.6 level.
People often ask how to interpret round-number levels. This is how I see it.
A large number of stop-loss orders tend to cluster around these levels. If the price breaks through one, those stop-loss orders can be triggered all at once, often causing volatility to spike.
The level itself doesn’t determine the direction. It’s more like a point where the bulls and bears are closely matched; in the end, the flow of funds will decide.
Don’t change your plan just because of a particular number, and don’t gamble on a specific reading with borrowed money.
#BTW
Risk management comes first in highly volatile markets.
People often ask how to interpret round-number levels. This is how I see it.
A large number of stop-loss orders tend to cluster around these levels. If the price breaks through one, those stop-loss orders can be triggered all at once, often causing volatility to spike.
The level itself doesn’t determine the direction. It’s more like a point where the bulls and bears are closely matched; in the end, the flow of funds will decide.
Don’t change your plan just because of a particular number, and don’t gamble on a specific reading with borrowed money.
#BTW
Risk management comes first in highly volatile markets.