🐋 $ARIA broke below the 0.21 level.
There are often quite a few stop-loss orders around key levels, so let’s first understand why they matter.
Previous highs and lows are common key price levels: the memory of price failing to rise or being supported there last time can often influence decisions when it returns to that level.
The first rebound after a break below is often seen as a test: if price is rejected near the level, the idea that support has turned into resistance becomes more convincing.
Calculating position size based on where you place your stop-loss is far more reliable than placing trades on gut feeling.
There are often quite a few stop-loss orders around key levels, so let’s first understand why they matter.
Previous highs and lows are common key price levels: the memory of price failing to rise or being supported there last time can often influence decisions when it returns to that level.
The first rebound after a break below is often seen as a test: if price is rejected near the level, the idea that support has turned into resistance becomes more convincing.
Calculating position size based on where you place your stop-loss is far more reliable than placing trades on gut feeling.