Market Notes｜$ZEC ｜Below the 1,000 mark
Definition: Round-number levels attract attention because people tend to place limit orders and take-profit orders near them. Orders can cluster around these levels, which are also known as psychological levels.
A common way to read them: Many people use these levels as risk-management anchors. Which side of a level to trade on and where to set a stop-loss are more practical considerations than guessing the direction.
The purpose of understanding an indicator is to avoid being misled by a single number, not to use it to pinpoint market tops and bottoms.
Definition: Round-number levels attract attention because people tend to place limit orders and take-profit orders near them. Orders can cluster around these levels, which are also known as psychological levels.
A common way to read them: Many people use these levels as risk-management anchors. Which side of a level to trade on and where to set a stop-loss are more practical considerations than guessing the direction.
The purpose of understanding an indicator is to avoid being misled by a single number, not to use it to pinpoint market tops and bottoms.
