🐋 $LIT has lost the 3.5 level.
A large number of orders usually cluster around round-number levels, so let’s first talk about why these levels matter.
Previous highs and lows are common reference points: the memory of being turned back or finding support there last time can influence buying and selling when the price returns.
The first rebound after a break below is often seen as a test: if the price is turned back near the level, that lends credibility to the idea that support has turned into resistance.
Calculating your position size based on where you set your stop-loss is much more reliable than placing trades by feel.
A large number of orders usually cluster around round-number levels, so let’s first talk about why these levels matter.
Previous highs and lows are common reference points: the memory of being turned back or finding support there last time can influence buying and selling when the price returns.
The first rebound after a break below is often seen as a test: if the price is turned back near the level, that lends credibility to the idea that support has turned into resistance.
Calculating your position size based on where you set your stop-loss is much more reliable than placing trades by feel.
