$PHA ｜Breaking through the 0.06 level
Before discussing capital, let’s first understand key price levels.
Round-number levels attract attention mainly because traders like to place pending orders and take-profit orders near them. Orders often cluster around these levels, which is why they’re also called psychological levels.
It’s common for the price to break through a level and then fall back, so many people wait for a candle to close and hold above it before taking the move seriously, rather than jumping in the moment it breaks through.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
It’s your money—think it through before you act.
Before discussing capital, let’s first understand key price levels.
Round-number levels attract attention mainly because traders like to place pending orders and take-profit orders near them. Orders often cluster around these levels, which is why they’re also called psychological levels.
It’s common for the price to break through a level and then fall back, so many people wait for a candle to close and hold above it before taking the move seriously, rather than jumping in the moment it breaks through.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
It’s your money—think it through before you act.