Technical Notes | $ADA | Failing to hold the 0.16 level
First, a definition: Whole-number levels matter mainly because traders tend to place orders and stop-losses near round numbers, so orders can cluster around them. These are also known as psychological levels.
A common interpretation: Breaking through a level only means that one side has the upper hand at that moment. Whether the move continues depends on where the next level lies and whether the funds can keep up.
With leveraged trading, first work out whether you can withstand the worst-case outcome, then consider what the indicators are saying.
First, a definition: Whole-number levels matter mainly because traders tend to place orders and stop-losses near round numbers, so orders can cluster around them. These are also known as psychological levels.
A common interpretation: Breaking through a level only means that one side has the upper hand at that moment. Whether the move continues depends on where the next level lies and whether the funds can keep up.
With leveraged trading, first work out whether you can withstand the worst-case outcome, then consider what the indicators are saying.