$DOT breaks through the 1.1 level.
A beginner asks the million-dollar question: where do key price levels come from?
A large number of stop-loss orders usually cluster around these levels. Once the price crosses one, those stops are triggered all at once, often causing volatility to spike.
Crossing a level only means one side has the upper hand at that moment. How much further the price can move depends on where the next key level is and whether trading volume can keep up.
Understanding an indicator helps you avoid being misled by a single number; it’s not for predicting whether prices will rise or fall.
#DOT
A beginner asks the million-dollar question: where do key price levels come from?
A large number of stop-loss orders usually cluster around these levels. Once the price crosses one, those stops are triggered all at once, often causing volatility to spike.
Crossing a level only means one side has the upper hand at that moment. How much further the price can move depends on where the next key level is and whether trading volume can keep up.
Understanding an indicator helps you avoid being misled by a single number; it’s not for predicting whether prices will rise or fall.
#DOT