Price action and chart patterns
Round numbers (psychological levels)
Prices ending in 00 or 50 (like 1.1000 or 1.0950) where many orders, stops and take profits cluster.
Why it works
Humans and algorithms both like round prices. The concentration of orders makes them react: they act as support, resistance or magnets.
How to use it
Expect a reaction at round numbers. Do not put your stop exactly on them; place it a few pips beyond.
The typical mistake
Setting the take profit exactly at 1.1000 and watching price turn at 1.0997.
FAQ
What is Round numbers in trading?
Prices ending in 00 or 50 (like 1.1000 or 1.0950) where many orders, stops and take profits cluster.
How do you trade Round numbers?
Expect a reaction at round numbers. Do not put your stop exactly on them; place it a few pips beyond.