A quick note: $ZK broke through the 0.016 level, 148 days since it last reached this point.
People often ask what a round-number level means. Here’s how I understand it.
There are often a lot of stop-loss orders clustered around these levels. Once the price crosses one, those stops can all be triggered at once, often causing volatility to spike.
Many people use these levels as anchors for risk management: which side of the level to take a position on and where to place a stop-loss are more practical considerations than guessing the direction.
The same data can mean very different things in different market conditions, so don’t apply any one rule mechanically.
#ZK
People often ask what a round-number level means. Here’s how I understand it.
There are often a lot of stop-loss orders clustered around these levels. Once the price crosses one, those stops can all be triggered at once, often causing volatility to spike.
Many people use these levels as anchors for risk management: which side of the level to take a position on and where to place a stop-loss are more practical considerations than guessing the direction.
The same data can mean very different things in different market conditions, so don’t apply any one rule mechanically.
#ZK