🐋 $ANIME breaks through the 0.003 level.
Large numbers of orders often cluster around round-number levels, so let’s first talk about how these levels can come into play.
A lot of stop-loss orders are often placed near these levels. If the price breaks through, those stops can all be triggered at once, often causing volatility to spike suddenly.
It’s common for the price to break through a level and then retreat, so many people wait for a candle to close and hold above it before counting the breakout, rather than jumping in the moment it happens.
The point of understanding this indicator is to be less spooked by the numbers, not to use it to predict price movements with certainty.
Large numbers of orders often cluster around round-number levels, so let’s first talk about how these levels can come into play.
A lot of stop-loss orders are often placed near these levels. If the price breaks through, those stops can all be triggered at once, often causing volatility to spike suddenly.
It’s common for the price to break through a level and then retreat, so many people wait for a candle to close and hold above it before counting the breakout, rather than jumping in the moment it happens.
The point of understanding this indicator is to be less spooked by the numbers, not to use it to predict price movements with certainty.