$ENA fell below the 0.22 level, 9 days after it last reached this point.
Let’s use this data to break down the key price levels.
A large number of stop-loss orders often cluster around these levels. If the price breaks through, those stops can be triggered all at once, often causing volatility to spike.
It’s not uncommon for the price to break through a level and then fall back, so many traders wait for confirmation at the candle close rather than chasing the move as it happens.
Sizing your position based on where you place your stop-loss is much more reliable than placing orders on a whim.
Let’s use this data to break down the key price levels.
A large number of stop-loss orders often cluster around these levels. If the price breaks through, those stops can be triggered all at once, often causing volatility to spike.
It’s not uncommon for the price to break through a level and then fall back, so many traders wait for confirmation at the candle close rather than chasing the move as it happens.
Sizing your position based on where you place your stop-loss is much more reliable than placing orders on a whim.