$DODOX ｜The 0.025 level gives way
Before looking at fund flows, first understand round-number levels.
The more often a price level is tested, the more weight it tends to carry in traders’ minds. However, some believe repeated tests may instead weaken the resting orders there.
Many people use these levels as reference points for risk management: which side of a level to enter on and where to place a stop-loss is more practical than trying to guess the direction of the market.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.
Before looking at fund flows, first understand round-number levels.
The more often a price level is tested, the more weight it tends to carry in traders’ minds. However, some believe repeated tests may instead weaken the resting orders there.
Many people use these levels as reference points for risk management: which side of a level to enter on and where to place a stop-loss is more practical than trying to guess the direction of the market.
The same data can mean very different things in different market conditions, so don’t blindly apply a rule of thumb.
