$BTW broke below the 1 level.
Let’s break this number down.
Round-number levels attract attention mainly because traders tend to place pending orders and take-profit orders near them, causing orders to cluster there. They’re also known as psychological levels.
When prices seesaw around these levels, traders on both sides can get shaken out repeatedly. Waiting for a clearer direction before making a move may be the safer approach.
Unusual data is often accompanied by greater volatility. At times like these, it’s better to reduce leverage rather than bet big.
Let’s break this number down.
Round-number levels attract attention mainly because traders tend to place pending orders and take-profit orders near them, causing orders to cluster there. They’re also known as psychological levels.
When prices seesaw around these levels, traders on both sides can get shaken out repeatedly. Waiting for a clearer direction before making a move may be the safer approach.
Unusual data is often accompanied by greater volatility. At times like these, it’s better to reduce leverage rather than bet big.