Do you take big round numbers into account when trading?
- Thread starter pg tips
- Start date
TheForexGuy
Forex Mentor
Straight up no. That's my personal take others may feel different.
These are 'psychological' levels which are only expected by traders to act as a turning point. I wouldn't even open a 'touch trade' on parity.
You look at the chart and use the price action to find your s/r levels, then you use these horizontal levels to base your trading decisions on.
Go back through your charts, and have a look at these big round numbers - you will find that price can chop through them and make a lot of noise around them. But if I get a nice price action signal off a big round number that is actually acting as support or resistance, then yeah Ill go for it. But the big round numbers never comes into my decision making process.
These are 'psychological' levels which are only expected by traders to act as a turning point. I wouldn't even open a 'touch trade' on parity.
You look at the chart and use the price action to find your s/r levels, then you use these horizontal levels to base your trading decisions on.
Go back through your charts, and have a look at these big round numbers - you will find that price can chop through them and make a lot of noise around them. But if I get a nice price action signal off a big round number that is actually acting as support or resistance, then yeah Ill go for it. But the big round numbers never comes into my decision making process.