$LIT broke through the 3.5 level.
When I first got into trading, I didn’t understand why everyone watched round-number levels. Later, I realized: traders like to place limit orders and stop-losses near round numbers. When enough orders pile up, buying and selling become more concentrated around those levels, and gradually they become psychological thresholds.
Breaking through a level only means that one side has the upper hand for now. How far the market can go afterward still depends on where the next key levels are and whether the money keeps flowing in.
Understanding an indicator is about being less spooked by numbers, not using it to pinpoint tops and bottoms.
#LIT
When I first got into trading, I didn’t understand why everyone watched round-number levels. Later, I realized: traders like to place limit orders and stop-losses near round numbers. When enough orders pile up, buying and selling become more concentrated around those levels, and gradually they become psychological thresholds.
Breaking through a level only means that one side has the upper hand for now. How far the market can go afterward still depends on where the next key levels are and whether the money keeps flowing in.
Understanding an indicator is about being less spooked by numbers, not using it to pinpoint tops and bottoms.
#LIT