Market Notes｜$LIT ｜Breaking the 3.5 Level
First, a definition: The more often a price level is tested, the more significant it tends to become in the eyes of market participants. However, some argue that repeated tests can also weaken the support available there.
How to read it: Volatility can increase around key levels. Leveraged positions need extra room here, and stop-losses placed too close to a round number can easily be triggered in a quick sweep.
The same reading can mean very different things in different market conditions, so don't apply any single rule mechanically.
First, a definition: The more often a price level is tested, the more significant it tends to become in the eyes of market participants. However, some argue that repeated tests can also weaken the support available there.
How to read it: Volatility can increase around key levels. Leveraged positions need extra room here, and stop-losses placed too close to a round number can easily be triggered in a quick sweep.
The same reading can mean very different things in different market conditions, so don't apply any single rule mechanically.
