🐋 $UAI fell below the 0.2 level, 5 days since it last reached this point.
A large number of stop-loss orders usually cluster around round-number levels, so let’s first talk about why these levels matter.
The longer it’s been since the price last reached this level, the more the distribution of positions around here may have changed. Past support and resistance may no longer hold.
Breaking through a level only means one side has the upper hand for now. How much further the price can go depends on where the next key level is and whether trading volume can keep up.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
#UAI
A large number of stop-loss orders usually cluster around round-number levels, so let’s first talk about why these levels matter.
The longer it’s been since the price last reached this level, the more the distribution of positions around here may have changed. Past support and resistance may no longer hold.
Breaking through a level only means one side has the upper hand for now. How much further the price can go depends on where the next key level is and whether trading volume can keep up.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
#UAI