Data: $ERA | Breaking through the 0.07 level
Definition: Round-number levels attract attention mainly because people tend to place orders and stop-losses around them. Orders often cluster at these levels, which are also known as psychological levels.
What to watch for: When a price returns to a level after a long time, it often encounters people who bought around that price previously. They may sell to break even or add to their positions, so trading activity often picks up.
Avoid placing orders during the few minutes when volatility is at its highest. Wait for the price to settle before taking a closer look.
#ERA
Definition: Round-number levels attract attention mainly because people tend to place orders and stop-losses around them. Orders often cluster at these levels, which are also known as psychological levels.
What to watch for: When a price returns to a level after a long time, it often encounters people who bought around that price previously. They may sell to break even or add to their positions, so trading activity often picks up.
Avoid placing orders during the few minutes when volatility is at its highest. Wait for the price to settle before taking a closer look.
#ERA