$LIT broke through the 3.5 level.
Let’s talk about what lies behind this number.
Round-number levels attract attention because traders like to place orders and take-profit levels around them, so orders tend to cluster there. That’s why they’re also called psychological levels.
Price swings can intensify around these levels, so leveraged positions need more room. Stop-losses placed too close to a round number can easily get taken out.
With leveraged trading, first consider whether you can handle the worst-case scenario, then think about what the signals are saying.
#LIT
Let’s talk about what lies behind this number.
Round-number levels attract attention because traders like to place orders and take-profit levels around them, so orders tend to cluster there. That’s why they’re also called psychological levels.
Price swings can intensify around these levels, so leveraged positions need more room. Stop-losses placed too close to a round number can easily get taken out.
With leveraged trading, first consider whether you can handle the worst-case scenario, then think about what the signals are saying.
#LIT