Market Notes | $NEAR | Break Below the 3.6 Level
Definition: Round-number levels attract attention mainly because traders tend to place orders and take-profit levels near them. Orders often cluster around these levels, which are also known as psychological levels.
How to read it: Volatility can increase around these levels. Leveraged traders need to leave more room here; stop-losses set too close to a round number can easily get triggered.
Working backward from where to place your stop-loss is much more reliable than placing trades on a whim.
Definition: Round-number levels attract attention mainly because traders tend to place orders and take-profit levels near them. Orders often cluster around these levels, which are also known as psychological levels.
How to read it: Volatility can increase around these levels. Leveraged traders need to leave more room here; stop-losses set too close to a round number can easily get triggered.
Working backward from where to place your stop-loss is much more reliable than placing trades on a whim.