Indicator Notes | $JCT | Breaking through the 0.01 level
First, the definition: The more often a price level is tested, the more significant it tends to become in people’s eyes. However, some believe that repeated tests can also deplete the orders resting there.
Next, how to read it: Many people use key levels as a reference for managing positions. Which side of the level you hold a position on and where you set your stop-loss are more practical considerations than predicting the direction of the market.
Unusually rare data is often accompanied by greater volatility. In such cases, it’s better to reduce your position rather than add to it.
First, the definition: The more often a price level is tested, the more significant it tends to become in people’s eyes. However, some believe that repeated tests can also deplete the orders resting there.
Next, how to read it: Many people use key levels as a reference for managing positions. Which side of the level you hold a position on and where you set your stop-loss are more practical considerations than predicting the direction of the market.
Unusually rare data is often accompanied by greater volatility. In such cases, it’s better to reduce your position rather than add to it.
