A note: $ERA has fallen below the 0.08 level.
People often ask what a key price level means. This is how I understand it.
The longer it’s been since the price last reached this level, the more the distribution of positions around it may have changed. Past support and resistance may no longer hold.
Many people use key levels as a reference for managing positions: whether to hold above or below them, and where to place a stop-loss, is more practical than trying to predict whether prices will rise or fall.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.
People often ask what a key price level means. This is how I understand it.
The longer it’s been since the price last reached this level, the more the distribution of positions around it may have changed. Past support and resistance may no longer hold.
Many people use key levels as a reference for managing positions: whether to hold above or below them, and where to place a stop-loss, is more practical than trying to predict whether prices will rise or fall.
The same reading can mean very different things in different market conditions, so don’t blindly apply a single rule of thumb.