$APR breaks through the 0.04 level.
A beginner’s million-dollar question: Why are round-number levels important?
A large number of stop-loss orders tend to cluster around these levels. Once the price moves past one, those stops can be triggered all at once, often causing volatility to spike suddenly.
When the price repeatedly crosses above and below a level, both bulls and bears can get whipsawed. Keeping positions small is often the better choice until the direction becomes clear.
All indicators merely describe past movements; prices can absolutely move in the opposite direction.
A beginner’s million-dollar question: Why are round-number levels important?
A large number of stop-loss orders tend to cluster around these levels. Once the price moves past one, those stops can be triggered all at once, often causing volatility to spike suddenly.
When the price repeatedly crosses above and below a level, both bulls and bears can get whipsawed. Keeping positions small is often the better choice until the direction becomes clear.
All indicators merely describe past movements; prices can absolutely move in the opposite direction.
