$AAVE ｜Breaking through the 130 level
Why are round-number levels important? There are usually plenty of stop-loss orders clustered around these levels. If the price breaks through, those stops are triggered all at once, and volatility can suddenly increase.
It’s not uncommon for the price to break through a level and then fall back, so many people wait for the candle to close for confirmation rather than following the move the moment it breaks through.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
#AAVE
The data is from public sources; verify it yourself.
Why are round-number levels important? There are usually plenty of stop-loss orders clustered around these levels. If the price breaks through, those stops are triggered all at once, and volatility can suddenly increase.
It’s not uncommon for the price to break through a level and then fall back, so many people wait for the candle to close for confirmation rather than following the move the moment it breaks through.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
#AAVE
The data is from public sources; verify it yourself.