Long btc.
The market does not work off of precise levels and exact prices: levels can often be better thought of as “zones,” extending 10-20 pips around a given price point. (Depending on the pair in question, and your broker, you’re already looking at a few pips of variance just in terms of spread.)
Furthermore, it’s quite common for professional and retail traders alike to use swing highs/lows as logical places to place stops and/or reversal orders.
So, depending on the liquidity available in a given “zone”, price can dip into the zone, find orders, and get rejected. In the case above, we would get stopped out of our trade, right where we should be looking for clues on continuation or rejection.
The market does not work off of precise levels and exact prices: levels can often be better thought of as “zones,” extending 10-20 pips around a given price point. (Depending on the pair in question, and your broker, you’re already looking at a few pips of variance just in terms of spread.)
Furthermore, it’s quite common for professional and retail traders alike to use swing highs/lows as logical places to place stops and/or reversal orders.
So, depending on the liquidity available in a given “zone”, price can dip into the zone, find orders, and get rejected. In the case above, we would get stopped out of our trade, right where we should be looking for clues on continuation or rejection.