Market Notes｜$BTW ｜Breaking through the 1.3 level
Definition: The more often a price level is tested, the more significant it tends to become in people’s eyes. However, some believe that repeated tests can also deplete the resting orders there.
Common interpretation: A level doesn’t determine the direction of the market. It’s more like the point where buyers and sellers are most intensely at odds; ultimately, executed trades will determine the direction.
Calculating position size based on stop-loss distance is much more reliable than guessing.
#BTW
Just a market observation. Please make your own trading decisions.
Definition: The more often a price level is tested, the more significant it tends to become in people’s eyes. However, some believe that repeated tests can also deplete the resting orders there.
Common interpretation: A level doesn’t determine the direction of the market. It’s more like the point where buyers and sellers are most intensely at odds; ultimately, executed trades will determine the direction.
Calculating position size based on stop-loss distance is much more reliable than guessing.
#BTW
Just a market observation. Please make your own trading decisions.