$SIREN broke through the 0.035 level.
When I first got into the market, I couldn’t understand why everyone watched round-number levels. Later, I realized that traders tend to place orders and stop-losses around round numbers. When enough orders pile up, the tug-of-war around those levels becomes more intense, and over time they turn into psychological levels.
It’s not uncommon for prices to break through a level and then fall back below it, so many people prefer to wait for the candle to close before considering it confirmed rather than chasing the price the moment it breaks through.
Indicators can fail, but stop-losses shouldn’t be neglected. Deciding in advance what to do if your judgment is wrong is more important than guessing correctly.
When I first got into the market, I couldn’t understand why everyone watched round-number levels. Later, I realized that traders tend to place orders and stop-losses around round numbers. When enough orders pile up, the tug-of-war around those levels becomes more intense, and over time they turn into psychological levels.
It’s not uncommon for prices to break through a level and then fall back below it, so many people prefer to wait for the candle to close before considering it confirmed rather than chasing the price the moment it breaks through.
Indicators can fail, but stop-losses shouldn’t be neglected. Deciding in advance what to do if your judgment is wrong is more important than guessing correctly.