A quick note: $ARIA broke below the 0.2 level (current price: 0.2012, now back above the level).
People often ask what a key round-number level means. This is how I understand it.
Previous highs and lows are the most commonly used reference points: the fact that price was turned back or held up there last time often influences buying and selling when it returns.
The first rebound after a breakdown is often seen as a litmus test: if price is turned back below the level, the idea that support has turned into resistance becomes more convincing.
All indicators merely describe what has already happened; the market could just as easily move in the opposite direction.
People often ask what a key round-number level means. This is how I understand it.
Previous highs and lows are the most commonly used reference points: the fact that price was turned back or held up there last time often influences buying and selling when it returns.
The first rebound after a breakdown is often seen as a litmus test: if price is turned back below the level, the idea that support has turned into resistance becomes more convincing.
All indicators merely describe what has already happened; the market could just as easily move in the opposite direction.
