🔢 Data: $UAI | Breach of the 0.03 level
· Definition: A large number of stop-loss orders are often placed near key levels. Once the price breaks through, these stops can be triggered all at once, causing volatility to suddenly spike.
· How to read it: The first rebound after a breach is often seen as a litmus test: if the price is pushed back down below the level, the idea that support has turned into resistance becomes more convincing.
The same reading can mean very different things in different market conditions, so don’t apply a single rule mechanically.
#UAI
· Definition: A large number of stop-loss orders are often placed near key levels. Once the price breaks through, these stops can be triggered all at once, causing volatility to suddenly spike.
· How to read it: The first rebound after a breach is often seen as a litmus test: if the price is pushed back down below the level, the idea that support has turned into resistance becomes more convincing.
The same reading can mean very different things in different market conditions, so don’t apply a single rule mechanically.
#UAI