Round number area

When the market finds a certain price range, traders tend to round up the price. The first is it's easy to remember, the second is easy to identify and the third is that most traders will have the same trend.

Round prices with 2 zeros behind are always the one that attracts many traders attention, for example, 1.3300, 1.5000, 1.2600, etc. ... There is really a war between the buyers and the sellers. in these circular numbers. It is seen as an important threshold in technical analysis.

The important price zones will increase daily trading activity
When trading intraday, trading activity usually increases at certain values. And the circular number area, especially those with 2 zeros behind are the price zones with increased trading activity.

However, there is another important resistance that traders should not forget, that is the price with the last two numbers is 20, 50, 80. For example, 1.2050, 1.3280, 0.9020, .... Trading activity also typically increases at these levels.

Why are levels like 20, 50, and 80 considered important? In psychology, level 50 is half the distance from one round to another. It's like showing a market movement.

The same is true for the 20 and 80 levels. For example, the price is at 1.3120 which means it is somewhere in the 1.3115 area. However, once the threshold of 1.3120 is reached, the sentiment is likely to act above this level.
Level 80 is similar. As soon as the price reaches 1.3180, the trader will contact the nearest circular number area of 13200.

Trade in the right way with key price zones

The market often happens where the price does not reach the same numbers in the circular number zone. Therefore, the trader's entry point should be 5 points higher or lower than that price (also depending on the position and market conditions in which you trade on one round or another) but Note that, do not place the exact trade order at that price.

For example, if you opened a long position with a profit target of 1.3100 (round number), it would be better to put this take profit down a little, like 1.3095.

If you are interested in the indicator that can identify the circular numbers with the last two numbers 00, 20, 50, 80, you can download this tool. Attached files to me at the end of the article. After installing this tool, the interface is as shown below: