Understanding Soft Spot
Soft Spot refers to a specific area of support or resistance in financial markets that is not as strong as other areas but still significant. It often relates to psychological pricing levels.
- It's an area where buyers or sellers are more active.
- Can influence market direction temporarily.
What Happens When Soft Spot Closes
When a Soft Spot closes, it means the price has moved past this level, potentially altering market sentiment. Traders must reassess their positions and strategies.
- Market dynamics can shift rapidly.
- Traders need to adapt quickly to new information.