Just making a note: $ARB has broken below the 0.18 level.
People often ask how to read key price levels. Here’s how I see it.
The longer it’s been since the price last reached a particular level, the more the distribution of positions around that level may have changed. The balance of bullish and bearish forces from back then may no longer hold.
When the price returns to a level after a long time, it often meets people who bought around there before and are looking to break even and exit, or add to their positions. As a result, trading volume tends to cluster around that level.
It’s much more reliable to work out your position size based on where you’ll place your stop-loss than to choose one by feel.
#ARB
People often ask how to read key price levels. Here’s how I see it.
The longer it’s been since the price last reached a particular level, the more the distribution of positions around that level may have changed. The balance of bullish and bearish forces from back then may no longer hold.
When the price returns to a level after a long time, it often meets people who bought around there before and are looking to break even and exit, or add to their positions. As a result, trading volume tends to cluster around that level.
It’s much more reliable to work out your position size based on where you’ll place your stop-loss than to choose one by feel.
#ARB