A note: $PONS broke through the 0.19 level.
People often ask how to interpret round-number levels. This is how I see it.
Support and resistance are more like zones than precise, single-point levels. It’s normal for prices to swing back and forth around these areas.
Volatility can increase near these levels, so leveraged positions need extra breathing room. If your stop-loss is set too close to a round number, it can easily get swept out in a sudden move.
Leave enough room for your futures positions, and don’t let one sharp swing knock you out of the market.
Don’t take this as advice.
People often ask how to interpret round-number levels. This is how I see it.
Support and resistance are more like zones than precise, single-point levels. It’s normal for prices to swing back and forth around these areas.
Volatility can increase near these levels, so leveraged positions need extra breathing room. If your stop-loss is set too close to a round number, it can easily get swept out in a sudden move.
Leave enough room for your futures positions, and don’t let one sharp swing knock you out of the market.
Don’t take this as advice.
