🐋 $ACT has fallen below the 0.011 level, the first time it’s been here in 26 days.
Large numbers of stop-loss orders are often placed around whole-number levels, so let’s first talk about why these levels matter.
A lot of stop-loss orders tend to cluster around these levels. If the price moves past one, those stops can be triggered all at once, often causing volatility to spike.
The first rebound after a break below is often seen as a litmus test: only if the price is pushed back down near the level does the idea that support has turned into resistance really hold up.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule.
#ACT
Large numbers of stop-loss orders are often placed around whole-number levels, so let’s first talk about why these levels matter.
A lot of stop-loss orders tend to cluster around these levels. If the price moves past one, those stops can be triggered all at once, often causing volatility to spike.
The first rebound after a break below is often seen as a litmus test: only if the price is pushed back down near the level does the idea that support has turned into resistance really hold up.
The same data can mean very different things in different market conditions, so don’t blindly apply a single rule.
#ACT