$HOT fell below the 0.00045 level (current price: 0.000457, now back above the level).
A beginner’s million-dollar question: Why do round-number levels matter?
The longer it’s been since the price last reached this level, the more the distribution of positions around it may have changed. The support or resistance from back then may no longer hold.
Volatility tends to increase around these levels, so leveraged positions need more room here. If you place a stop-loss too close to a round-number level, it can easily get swept out in a flash.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
#HOT
A beginner’s million-dollar question: Why do round-number levels matter?
The longer it’s been since the price last reached this level, the more the distribution of positions around it may have changed. The support or resistance from back then may no longer hold.
Volatility tends to increase around these levels, so leveraged positions need more room here. If you place a stop-loss too close to a round-number level, it can easily get swept out in a flash.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule.
#HOT