$JCT | The 0.003 level gives way
How are key price levels determined? Round-number levels attract attention mainly because traders tend to place orders and take-profit levels around whole numbers, so orders often cluster there. These are also known as psychological levels.
Volatility often increases around these levels. Leveraged positions need extra room here; stop-losses placed too close to round numbers can easily get triggered.
Don't change your original plan based on a single number, and don't use borrowed money to validate a reading.
#JCT
I could be wrong too—don't follow this blindly.
How are key price levels determined? Round-number levels attract attention mainly because traders tend to place orders and take-profit levels around whole numbers, so orders often cluster there. These are also known as psychological levels.
Volatility often increases around these levels. Leveraged positions need extra room here; stop-losses placed too close to round numbers can easily get triggered.
Don't change your original plan based on a single number, and don't use borrowed money to validate a reading.
#JCT
I could be wrong too—don't follow this blindly.