๐ $Q broke through the 0.1 level.
A large number of stop-loss orders tend to cluster around round numbers, so letโs first talk about why key price levels matter.
A common rule of thumb is that a resistance level thatโs decisively broken often turns into support, while a support level thatโs decisively broken often becomes resistance.
Volatility often increases around these levels. Leveraged positions need more room here, as stop-losses set too close to round numbers can easily get swept.
The point of understanding this indicator is to avoid being spooked by a single numberโnot to use it to predict whether prices will rise or fall.
A large number of stop-loss orders tend to cluster around round numbers, so letโs first talk about why key price levels matter.
A common rule of thumb is that a resistance level thatโs decisively broken often turns into support, while a support level thatโs decisively broken often becomes resistance.
Volatility often increases around these levels. Leveraged positions need more room here, as stop-losses set too close to round numbers can easily get swept.
The point of understanding this indicator is to avoid being spooked by a single numberโnot to use it to predict whether prices will rise or fall.