$BTW moves above the 2.1 level.
Let’s break this number down.
Round-number levels attract attention mainly because traders like to place orders and stop-losses around them, so orders tend to cluster in that area. That’s why they’re also called psychological levels.
The first pullback after moving above one is often seen as a test: if the price can hold above the level, the idea that resistance has turned into support becomes more convincing.
The same reading can mean entirely different things in different market conditions, so don’t apply any single rule blindly.
Let’s break this number down.
Round-number levels attract attention mainly because traders like to place orders and stop-losses around them, so orders tend to cluster in that area. That’s why they’re also called psychological levels.
The first pullback after moving above one is often seen as a test: if the price can hold above the level, the idea that resistance has turned into support becomes more convincing.
The same reading can mean entirely different things in different market conditions, so don’t apply any single rule blindly.