Round numbers (1.3000, 50000, 4500) act as psychological magnets. Trade reactions, bounces, and breakouts at these institutional levels.
Indicators Used
Round Number LevelsVolumeCandlestick Patterns
Rules
๐ Entry Rules
- Identify major round number (00, 50, 000 levels)
- Wait for price to approach level
- Look for rejection wicks or absorption on first touch
- Enter on confirmation candle in rejection direction
- Stop beyond the round number level
๐ก Pro Tip
Round numbers ending in 000 are 3ร more powerful than those ending in 00. Options gamma exposure often clusters at these strikes.