$IDOL ｜Breaking through the 0.025 level
Before discussing capital flows, first understand round-number levels.
A large number of stop-loss orders are often placed around these levels. If the price moves past one, those stops can be triggered all at once, causing volatility to spike suddenly.
It’s not uncommon for the price to cross a level and then fall back below it, so many people prefer to wait for the price to hold above it at the close rather than follow the move the moment it breaks through.
Understanding this indicator is meant to keep the numbers from spooking you, not to predict whether prices will rise or fall.
Before discussing capital flows, first understand round-number levels.
A large number of stop-loss orders are often placed around these levels. If the price moves past one, those stops can be triggered all at once, causing volatility to spike suddenly.
It’s not uncommon for the price to cross a level and then fall back below it, so many people prefer to wait for the price to hold above it at the close rather than follow the move the moment it breaks through.
Understanding this indicator is meant to keep the numbers from spooking you, not to predict whether prices will rise or fall.