Doing manual test to confirm misconceptions is important to refine your knowledge of markets. Many ask: Are whole round numbers important in #smallcaps #trading?
Run simple exercise to see significance vs noise:
1.
Run simple exercise to see significance vs noise:
1.
Collect 200 smallcap charts, find how many run on fresh frontside into whole round number and what happens to price there. For example first push from 4.2 to 5.00.
Run it for multiple % levels not just one: 2, 4, 5 etc. First touch-test only.
2.
Run it for multiple % levels not just one: 2, 4, 5 etc. First touch-test only.
2.
Is reject followed often (by 30c) or does many times price swipe straight over? Remember what you seek is significance vs randomness. If sometimes it works but many times it does not respect level at all, the answer is hidden in finding right complimentary situations.
3.
3.
The answer is they can matter but to get above guessing range more than just that has to be used. Context needs to be refined more. But do exercise by yourself so you realize it just how close to random it can be otherwise.
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