Indicator Notes | $DODOX | Lost the 0.025 Level
First, a definition: The more often a price level is tested, the more significance it tends to carry in people’s minds. However, some believe repeated tests instead deplete the orders resting at that level.
A common interpretation: When the price swings back and forth around a key level, traders on both sides may get shaken out. It’s often better to stay on the sidelines until the direction becomes clear.
The same data can mean very different things in different market conditions, so don’t apply any single rule mechanically.
Data is from publicly available sources. Please verify it yourself.
First, a definition: The more often a price level is tested, the more significance it tends to carry in people’s minds. However, some believe repeated tests instead deplete the orders resting at that level.
A common interpretation: When the price swings back and forth around a key level, traders on both sides may get shaken out. It’s often better to stay on the sidelines until the direction becomes clear.
The same data can mean very different things in different market conditions, so don’t apply any single rule mechanically.
Data is from publicly available sources. Please verify it yourself.