Technical Note｜$W ｜Breaking the 0.015 Level
First, a definition: Previous highs and lows are commonly used reference price levels. The memory of having failed to rise past or having found support at a particular level often influences decisions when the price returns to it.
How to read it: When the price returns to a level after a long time, people who entered around that level before may sell to break even or add to their positions, so trading activity often picks up.
Unusually rare readings usually signal more intense volatility. At such times, it’s better to reduce your position rather than increase it.
First, a definition: Previous highs and lows are commonly used reference price levels. The memory of having failed to rise past or having found support at a particular level often influences decisions when the price returns to it.
How to read it: When the price returns to a level after a long time, people who entered around that level before may sell to break even or add to their positions, so trading activity often picks up.
Unusually rare readings usually signal more intense volatility. At such times, it’s better to reduce your position rather than increase it.