#231: How to use Round Numbers as a FX Trader
Have a great weekend.
Once prices approach the round-number level, speculators will try to target the stops clustered in that region. Well let's say my profit was at 69, 0.
Because this setup is basically a derivative of momentum trading, it should be traded only in the direction of the larger trend. To me it's really important that as a professional trader and as a Forex teacher, I'm teaching people how to trade in an easy, simplified way that is practical.
Think of the 00s and the 50s. What is the price of this currency pair and why? Decision in placing the stop loss.
Go back and look at charts, do some back testing and have a look at levels where on any currency pair where the price restored or bounced at a 00 or 50, they're everywhere. During the last few years the importance of the round numbers increased because they are used for options barriers levels and are protected.
Taking Advantage of the Hunt The "stop hunting with the big specs" is an exceedingly simple setup, requiring nothing more than a price chart and one indicator.
I use these levels in a variety of different ways — with a trade example I love to use work from home factory jobs levels in a variety of different ways. I also love the use of horizontal lines on my charts.
In this particular example, the downside momentum is extremely strong as traders gun stops at the 1. Go back and look at charts, do some back testing and have a look at levels where on any currency pair where the price restored or bounced at a 00 or 50, they're everywhere.
To get the best entry and exit points. I took the trade at 9 o'clock on the Thursday night my big round number forex pdf, here in New Zealand. If the nearest round number in a trade is very well respected before then we can place the stop loss in accordance to that round number.
Let's get into it right now. Only if it is within the traders money management rules All round numbers will not show these actions. This point area is known as the "trade zone", much like the yard line on the football field is known as the "redzone". In this particular example, the downside momentum is extremely strong as traders software per fare soldi online stops at the 1.
I mean my profit target wasn't there. If prices do not immediately follow through, chances are the setup failed.
To give you an example, just last night I took a trade on the New Zealand dollar, Swiss Franc on the four hour chart, you can go and find it on your charts. Aside from watching these key forex rates of axis bank levels, there is only one other rule that a trader must follow in order to optimize the probability of success.
Andrew Mitchem here, The Forex trading coach. The price fell down till a level of 1. That one tip alone could make you an absolute fortune from your trading because it just really helps.
In the end the trade worked beautifully.
So if a round number's the potential reason, that's great. We place a limit sell orders pending in numbers Round Number In the above chart the price level 1. Long position is initiated when: Psychologically round numbers are there everyday in what we do, what we buy, so it's no different to trading Forex.
I'll see you this time next week for more trading tips and information. Hey Forex traders!
Hope that helps, round numbers are very, very important. This is a typical example of round number acting as resistance. This is Andrew Mitchem the Forex trading coach.
Use these levels and do some back testing So use round numbers in your trading. Rules for short position The prices approach round number resistance.
The price bounced through the 70 level, 0. Short position is initiated when: Both names communicate the same idea - namely that the participants have a high probability of scoring once they enter that area.
Share this: I found this strategy on google and i work from home factory jobs was interesting enough to post it: We will put pending order 20 pips above the open firstthe ratio of stop loss and profit target 1: Bye for now.
The prices approach round number support. It meant that I could then use that as an area to put my stop loss above that because in order for the price or for the trade to fail, it meant that the price then had to of rose back up through 70 and beyond in order to stop me out of the trade.
The idea behind this setup is straightforward. Well, a horizontal line does not move.
My profit target was using a fib level, but as an example I want to get profit out of a sell trade before the price has to go through the next round number.