Market Notes｜$KGEN ｜Breaking through the 0.09 level
Definition: The longer it has been since the price last reached this level, the more the structure of positions around it may have changed. The balance of bullish and bearish forces from the past may no longer hold.
How to read it: When prices swing back and forth near a key level, both bulls and bears can easily get stopped out repeatedly. Before the direction becomes clear, using a smaller position may be the more prudent approach.
Calculating position size based on the stop-loss distance is much more reliable than choosing a position size by feel.
Definition: The longer it has been since the price last reached this level, the more the structure of positions around it may have changed. The balance of bullish and bearish forces from the past may no longer hold.
How to read it: When prices swing back and forth near a key level, both bulls and bears can easily get stopped out repeatedly. Before the direction becomes clear, using a smaller position may be the more prudent approach.
Calculating position size based on the stop-loss distance is much more reliable than choosing a position size by feel.
