Indicator Notes｜$PONS ｜Broke below the 0.3 level
First, a definition: support and resistance are actually zones, not precise price points. It’s perfectly normal for prices to test the area back and forth.
A common interpretation: volatility tends to increase around key levels. Leveraged traders should leave more room here; placing a stop-loss too close to a round number can easily get you stopped out in one quick move.
Indicators can fail, but risk management shouldn’t be skipped: thinking ahead about what to do if you’re wrong is more important than predicting correctly.
#PONS
First, a definition: support and resistance are actually zones, not precise price points. It’s perfectly normal for prices to test the area back and forth.
A common interpretation: volatility tends to increase around key levels. Leveraged traders should leave more room here; placing a stop-loss too close to a round number can easily get you stopped out in one quick move.
Indicators can fail, but risk management shouldn’t be skipped: thinking ahead about what to do if you’re wrong is more important than predicting correctly.
#PONS