$JCT ｜Breaking through the 0.008 level
Before looking at position sizing, first understand round-number levels.
Previous highs and lows are the most common key price levels: the memory of being rejected at that level or being unable to fall below it last time can influence buying and selling when price reaches it again.
The first pullback after breaking above a level is often seen as a litmus test: if price can hold above it, the idea that resistance has turned into support becomes more convincing.
Calculating position size backward from the stop-loss distance is much more reliable than placing trades by gut feel.
#JCT
Before looking at position sizing, first understand round-number levels.
Previous highs and lows are the most common key price levels: the memory of being rejected at that level or being unable to fall below it last time can influence buying and selling when price reaches it again.
The first pullback after breaking above a level is often seen as a litmus test: if price can hold above it, the idea that resistance has turned into support becomes more convincing.
Calculating position size backward from the stop-loss distance is much more reliable than placing trades by gut feel.
#JCT