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Levels & Patterns

Round number

Beginner

Also calledpsychological levelbig figure

Prices like 1.1000 or 100,000 where orders cluster, so they act like support and resistance.

What it means

Price often turns just before them or runs just beyond them. Avoid hiding your stop right next to one.

In practice

People place orders at tidy prices. Take-profit orders, stops and option strikes gather at figures such as 1.1000 on EUR/USD or 100,000 on Bitcoin, so the market often hesitates there.

Traders use round numbers as extra confirmation for a level and as realistic targets. A first approach to a major one commonly brings a reaction.

What to watch for

Because everyone sees them, stops stack up just beyond. Placing a stop a few ticks past a big round number puts it exactly where the market tends to reach before turning.

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