Round numbers in your strategy: how do you use them?
Price clusters around round numbers because orders cluster there — 1.1000, 150.00, 0.9000. The levels are self-reinforcing and worth marking, though they break as often as they hold.
How do you trade them?
- the round numbers you mark in advance
- how you use them for entries, targets or filters
- the round number that acted like a wall
The support and resistance guide covers the psychology of round levels.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
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