Technical Note｜$PONS ｜Breaking Through the 0.2 Level
First, a definition: Integer price levels are considered important mainly because traders tend to place limit orders and stop-loss orders around whole numbers. Orders often cluster at these levels, which are also known as psychological levels.
A common interpretation: The first pullback after breaking above a level is often seen as a test. If the price can hold near that level, the idea that resistance has turned into support is more convincing.
Don’t change your plan just because of a particular number, and never gamble on a hunch with borrowed money.
#PONS
First, a definition: Integer price levels are considered important mainly because traders tend to place limit orders and stop-loss orders around whole numbers. Orders often cluster at these levels, which are also known as psychological levels.
A common interpretation: The first pullback after breaking above a level is often seen as a test. If the price can hold near that level, the idea that resistance has turned into support is more convincing.
Don’t change your plan just because of a particular number, and never gamble on a hunch with borrowed money.
#PONS