Round numbers (1.0000 in FX, $100 in stocks, $50,000 in crypto) act as psychological support and resistance because retail traders cluster orders at these levels. Trade the first clean rejection off a major round number.
Indicators Used
Pivot PointsSwing High/Low
Rules
📉 Short at Round Resistance
- Identify major round number price is approaching (e.g., $100, 1.2000, 50000)
- Price spikes up to or just beyond the round number
- First rejection candle: upper wick at/above round number, close back below
- Enter short on close of rejection candle
- Stop: above the rejection wick high (tight)
- Target: next minor support, 2R minimum
📈 Long at Round Support
- Price declining toward major round number
- Rejection candle: lower wick at/below, close above
- Enter long on candle close
- Stop: below rejection low
- Target: prior resistance or next round number up
Tight
Stop
2:1
R:R
💡 Pro Tip
Not all round numbers are equal. The 'rounder' the number, the more reactive. 1.0000 (parity) is stronger than 1.0500, which is stronger than 1.0250. Major round numbers in currency pairs, century levels in stocks, and 10K multiples in Bitcoin historically produce the cleanest reactions.