$SIREN ｜The 0.03 level gives way
Before discussing capital flows, let’s first clarify what a round-number level is.
A support level is an area where the price has repeatedly found a floor as it falls. A resistance level is an area where it has repeatedly stalled as it rises.
When the price moves back and forth across a level, both sides can easily get stopped out. It’s often better to stay on the sidelines until the direction becomes clearer.
The point of understanding this indicator is to avoid being spooked by a single number—not to use it to pinpoint tops and bottoms.
Before discussing capital flows, let’s first clarify what a round-number level is.
A support level is an area where the price has repeatedly found a floor as it falls. A resistance level is an area where it has repeatedly stalled as it rises.
When the price moves back and forth across a level, both sides can easily get stopped out. It’s often better to stay on the sidelines until the direction becomes clearer.
The point of understanding this indicator is to avoid being spooked by a single number—not to use it to pinpoint tops and bottoms.