Indicator Notes | $XRP | Breaking Below the 1.35 Level
First, a definition: Round-number levels attract attention mainly because traders tend to place orders and stop-losses around them, causing orders to cluster in that area. That’s why they’re also called psychological levels.
A common interpretation: Volatility can increase near these levels. With leveraged trades, it’s especially important to leave more room here; stop-losses placed too close to a round number can get triggered in a flash.
Before looking at what the indicators say, work out the worst-case scenario for your leveraged position and make sure you can withstand it.
First, a definition: Round-number levels attract attention mainly because traders tend to place orders and stop-losses around them, causing orders to cluster in that area. That’s why they’re also called psychological levels.
A common interpretation: Volatility can increase near these levels. With leveraged trades, it’s especially important to leave more room here; stop-losses placed too close to a round number can get triggered in a flash.
Before looking at what the indicators say, work out the worst-case scenario for your leveraged position and make sure you can withstand it.