$PONS ｜The 0.16 level gives way
Before discussing position sizing, understand the key price levels.
There are usually plenty of stop-loss orders around key levels. If the price breaks through, those stops can be triggered all at once, often causing volatility to spike.
Many traders use key levels as a reference for managing positions: which side of the level to trade on and where to place a stop-loss are more practical considerations than trying to guess the direction.
Don’t place an order during the fastest move; wait for the candlestick to close before deciding.
Before discussing position sizing, understand the key price levels.
There are usually plenty of stop-loss orders around key levels. If the price breaks through, those stops can be triggered all at once, often causing volatility to spike.
Many traders use key levels as a reference for managing positions: which side of the level to trade on and where to place a stop-loss are more practical considerations than trying to guess the direction.
Don’t place an order during the fastest move; wait for the candlestick to close before deciding.
