🐋 $LUMIA fell below the 0.115 level.
A lot of orders tend to cluster around round-number levels, so let’s first talk about how key price levels can come into play.
The more often a level is tested, the more significant it tends to become in traders’ eyes. But some argue that repeated tests can also weaken the support there.
It’s common for prices to break through a level and then fall back, so many traders wait for the close to hold above it rather than jumping in the moment it’s breached.
Extreme readings often signal greater volatility, which is all the more reason to reduce position sizes rather than make a big bet.
A lot of orders tend to cluster around round-number levels, so let’s first talk about how key price levels can come into play.
The more often a level is tested, the more significant it tends to become in traders’ eyes. But some argue that repeated tests can also weaken the support there.
It’s common for prices to break through a level and then fall back, so many traders wait for the close to hold above it rather than jumping in the moment it’s breached.
Extreme readings often signal greater volatility, which is all the more reason to reduce position sizes rather than make a big bet.