Just saw: $AAVE fell below the 160 level.
People often ask what key price levels mean. This is how I understand them.
The more often a price level is tested, the more significance it tends to carry in people’s eyes. But some argue that repeated tests can also use up the limit orders there.
The first rebound after a break below is often seen as a litmus test: if the price is turned back near the level, the idea that support has turned into resistance holds more weight.
Leave enough margin for your futures positions, so one sudden swing doesn’t liquidate you.
People often ask what key price levels mean. This is how I understand them.
The more often a price level is tested, the more significance it tends to carry in people’s eyes. But some argue that repeated tests can also use up the limit orders there.
The first rebound after a break below is often seen as a litmus test: if the price is turned back near the level, the idea that support has turned into resistance holds more weight.
Leave enough margin for your futures positions, so one sudden swing doesn’t liquidate you.