Why price loves round numbers
Price keeps stalling at the same round number. That's not a coincidence. Here's how to use it.
- Many traders put take-profits, entries and stops at round numbers.
- So expect a reaction there: a pause, a wick, or a full turn.
- Aim your target just before the round number. Price often turns a little early.
- Put your stop just past the round number, not right on it.
The real chart used in this lesson
Real XAUUSD 4-hour chart · Sep 10 – Sep 29 · quiz: XAGUSD 1-hour
Quiz at the end: You're long and a round number is just ahead. Hold, take profit, or take part?
Full transcript
Price keeps stalling at the same round number.
That's not a coincidence. Here's how to use it.
This is a real gold 4-hour chart, from September. Watch 4,400.
On September 11, gold poked to 4,402, then closed back down at 4,362.
On September 18, it got to 4,399.52, less than a dollar short. Turned away again.
September 19, 4,396.91. Same story.
Why? Many traders put orders at round numbers. Take-profits, entries, and stops pile up there.
So expect a reaction there: a pause, a wick, or a full turn.
Here it was a full turn. Gold slid to 4,111 by September 28.
How to use it. One: when you're in profit, aim your target just before the round number.
Don't wait for the exact number. Price often turns a little before it.
Two: if you sell below it, put your stop just past it, not right on it.
Stops sitting right on 4,400 got hit by that poke to 4,402.
Save this. Round number ahead: expect a reaction. Target just before it. Stop just past it.
Your turn. You're long silver, and 58 is just ahead. Hold, take profit, or take part? Comment below.
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AI-voiced; written and reviewed by the Borearis Research Team. For education only, not investment advice. Trading involves risk.