$BLUR broke below the 0.011 level (current price: 0.01108, now back above it).
Round-number levels often have a lot of orders clustered around them, so let’s first talk about why key price levels can matter.
The more often a price level is tested, the more significant it tends to become in people’s minds. But some argue that repeated tests can also exhaust the buying support at that level.
When price moves back and forth around a key level, stop-losses on both sides may get triggered repeatedly. Until the direction becomes clear, keeping your position size small may be the more prudent choice.
Understanding an indicator is about being less spooked by the numbers, not using it to predict tops and bottoms.
#BLUR
It’s your money, so you decide.
Round-number levels often have a lot of orders clustered around them, so let’s first talk about why key price levels can matter.
The more often a price level is tested, the more significant it tends to become in people’s minds. But some argue that repeated tests can also exhaust the buying support at that level.
When price moves back and forth around a key level, stop-losses on both sides may get triggered repeatedly. Until the direction becomes clear, keeping your position size small may be the more prudent choice.
Understanding an indicator is about being less spooked by the numbers, not using it to predict tops and bottoms.
#BLUR
It’s your money, so you decide.