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Psychologicalroundnumber

Education post 15/100 – How to trade Psychological Price Levels?What are Psychological levels? Psychological levels are price levels which tend to draw big market attention and typically witness a reaction by price when tested. These levels are the main round numbers (whole numbers), referred to as “Double Zeros such as .9800, .990. Plotting support and resistance levels is often a challenging and subjective task. It is also commonly one of the first areas of price action new traders attempt to tackle. Support and resistance can be established in numerous ways, such as: trendlines, moving averages, pivot point levels, Fibonacci levels, key high/low points etc. A common complaint with a lot of these methods though is subjectivity. This is why we believe psychological levels are appealing, as the numbers are effectively embedded within market structure and are entirely objective, as you’ll see going forward.  So...What are Psychological levels? Say that you’re the proud owner of new car, and a buddy down the pub asks how much it cost. Assuming it set you back $10,999, it’s unlikely that you would tell him that exact figure. Instead, to keep things simple, you’d probably round the number to the nearest thousand i.e. $11,000. And this is exactly what happens in the financial markets! It is far more likely that a trader will select 1.2500 over 1.2493, for example. Why do they work and how to trade them? Trading support and resistance can be a fantastic way to approach the market and for many new traders this is one of the first areas of technical analysis that they come to properly understand. There are a great many varieties of support and resistance in the market that traders can look to build strategies around such as: key highs/lows, trend lines, Fibonacci levels, moving averages, pivots, Bollinger bands and more. However, there are also levels that are already embedded within the market that can act as powerful support and resistance and traders don’t need any tools or to perform any complicated analysis to find them. These levels are called “Psychological levels” More on our website, link on Profile.
Education
by GroundStoneHoldings
OMGBTC good signal to buy chart No1Technicals only I think market didn't move after it bounced second time from the 50000 area. Wick of the candle touched support created by bodies of candles year ago. Double bottom is spread which gives bigger chance that the rebound will be stronger. It is still good time to enter market as the risk is very low. Also 50000 is working as psychological support/resistance area. I set TP around 90000 or if the pair touch 200 Ema then trade should be automatically closed unless you are expecting massive movement. SL around 45000.
Long
by Krystiannwk
NZDJPY short Pair is in downtrend for at least year. It created visible channel which trapped the pair in August and since then it is bouncing from two levels 75.50 and 72.50. If I would look for psychological levels I would rather go for 75 and 70. What is telling me that the pair has good chance to follow described scenario: - trade is following recent trade - GAP from daily chart is respected by market(blue circle) and successfully stopped bullish movement last Friday - 200 Ema also successfully stopped bullish move with fancy doji candle. - it is very common for market that when pair is trading in channel upper and lower parts are creating very strong support/resistance area. - I choose TP area wisely and it is set in 50% of channel. It is reasonable and it still gives us 3:1 R/R. Cons: - there is actually one and it is big bullish candle which are often suggesting further up movement I think it is worth risk and if it happens that the Yen will be loosing on value in next week then I will set up trading plan accordingly.
Short
by Krystiannwk
GBPNZD FAILED to break psychological levelOn 11th September GBPNZD tried to break psychological round number 2.0000 but failed to do so. Within the next 2 weeks, we saw a downturn of almost 500 pips which clearly showed that the market is not going through that resistance. Now it made a pullback and we see it as an opportunity to get in. GBPNZD stopped at Fibonacci 50 and with a proper stop-loss, you may be able to catch a bigger move to the downside. Potential profit target is zone 1.9400-1.9470.
Short
by AtlantisCapitalGroup
Counter Trend Scalp For October WTI Crude Oil FuturesFollowing Thursday’s moderate retracement, the sky has been the limit for October WTI crude oil futures. Since the traditional New York pit open at 9:00 AM EST, prices have risen more than $.50. The Trade Counter-trend scalps beneath $70.00 are likely to produce positive price action. Sells from $69.92 with an initial stop at $70.01 produce 5-8 quick ticks. This is a counter-trend play, so the risk profile is a bit greater than usual. The goal of the scalp is immediate and positive price action. Be sure to have the stop loss in the queue at $70.01 before the trade is taken.
NYMEX:CLV2018Short
by FXLeaders
September WTI Crude: Fibonacci Long From Daily SupportSeptember WTI crude is trading right at the 62% Fibonacci macro-wave retracement. Given the reported builds in supply, it is tough to envision a scenario where $65.00 is not tested in the near future. In the event that we see a sell-off in September crude later this week, a long trade from just above the 78% retracement is a good location to the bull. Here is the trade: Entry: Buy $65.12 Stop Loss: $64.94 Profit Target: $65.30 Risk Vs Reward Ratio: 1/1 The proximity to the psyche level of $65.00 makes a bump north from $65.12 likely.
NYMEX:CLU2018Long
by FXLeaders
USDCHF on the way to go above 1.0 once again USDCHF is on bullish trend since mid February. It formed double top above 1.0 and then went down. When U look at the chart it seems like that any short attempt for this pair is stop by strong bullish movement. I market on the chart inverted H&S formation plus double bottom which is holding pair above one of the Daily GAPs. To me this pair is preparing to go above 1.0 level and reach another highest high which is around 1.0333. I would consider this trade as the mid/long term with quite nice risk/reward ration close to 3:1.
Long
by Krystiannwk
ETHBTC Can Be In The Final Stages Of CorrectionBITTREX:ETHBTC looks pretty clear with five waves up from lows and regular 3-3-5 three-wave A-B-C correction. ETHBTC currently trading in wave (4) of C from where we expect another decline into wave (5) of C towards 0.070 psychological strong support level, where ETHBTC may come to the end of correction. Just keep in mind that we need impulsive five waves up from that projected support and break above 0.100 level to confirm bullish reversal!
by ew-forecast
12
VTRBTC(vTorrent) Showing Bullish SetupWe went through some XXX/BTC crosses and saw interesting pattern on BITTREX:VTRBTC (vTorrent). Well, since we saw a potential bottom on cryptocurrencies, there's some new opportunities on ALTcoins and one of them is vTorrent, which has clear five waves up into black wave A and three-wave correction into black wave B. Currently you can see it's already bounced from ideal 61,8% Fibo. reatracement and psychological 0.000050 level, so we expect much higher prices, especially if breaks above 0.000093 bullish confirmation level. Any decline will be just a temporary correction within uptrend!
VLong
by ew-forecast
9
Ethereum Breaks Out Of A Range, Headed For 1000 LevelBITFINEX:ETHUSD is trading much better than BTC these days. We see crypto breaking out of a triangle, which means this can be a fifth wave advance, final leg before we get another deeper pullback. Keep in mind that triangle occurs prior to the final move within a larger uptrend, so make sure you are not late to the party here. 1000 level will also be an important psychological level that can act as a resistance, but longer term however we remain bullish. 765 is very important short-term level; as long it holds 1000 is in view. A fall below it will signal that temporary top can be in place and we are heading into a deeper pullback.
BITSTAMP:ETHUSD
by ew-forecast
4
MCO Monaco possible 250% gain ?Monaco seems like found solid support around 5000 round level, marked with green line. We could even say that pair created some kind of triple bottom(marked with three blue arrows). Monaco should appear on multiple exchanges soon and I assume it should make this coin move towards north in near future. ...so far it moved till 15000 level and retrace back to 10k which was defended in good fashion. I would say that 10k is new psychological round number. ...200 ema is playing good role in keeping the pair above mentioned levels above. I think TP area would be between 25000 and 30000 which gives us 250% gain mentioned in title
MLong
by Krystiannwk
Monero: Clear Double Zig-Zag Corrrection Looks CompletedMonero declined from 155 to 62 and lost exactly 60%! This is interesting sign, but to be more confident, 62 is really nice psychological support because wave (I) resistance became wave (IV) support. There is one more and the most important sign! We see a clear double zig-zag correction, which means that correction could be completed and we could expect Monero back to bullish trend. Keep in mind that bulls will be confirmed, when we see a broken channel resistance line. ew-forecast.com <- Visit for more Cryptocurrencies FREE Analysis!!
BITFINEX:XMRUSDLong
by ew-forecast
11
CLAMS this is madness second updatedThere are few important things to mention Last push was stopped by second important GAP which is clearly visible on the chart.Pair is rejected continuously for the last week or so. It seems to me that 2000 is playing role here as another psychological number which holds pair steady also there are some possibilities to consider. - Pair will try to move with full force above GAP. - Pair will move lower to bounce again from 200EMA - Pair will move down to bounce from lower GAP The area marked by eclipse is in my opinion false rejection signal. The latest higher high should be beaten some time in future. I draw possible 200 ema movement in the future which are not updated after idea is published
CLong
by Krystiannwk
Ripple short This chart shows that this coin is not much different from the rest of coins. It is correlated with most of them and follows the same trend. I marked with yellowish rectangle nice price action with solid spike which was hold by GAP from daily chart for 3 consequential days. Pair never managed to go above this level for one full day. Currently it is trading below psychological level 5000 which is not really respected by market but it may stop another attempt to go higher. I would short it till 1000.
Short
by Krystiannwk
Lomocoin quite opportunity for double of the stake with low riskI marked three GAPS and intentionally used different colours. The blue one is combined with psychological level which is 10k on this chart. There is long shadow of the candle suggesting that the 10k is a strong support and we could expect further gains towards bitcoin. It is nice opportunity it is kind of risky trade but with quite a nice reward. I would think about closing position if the pair will go beyond 10k and stay there for a while. Candlestick in the blueish rectangle suggesting bullish trend in near future.
L
by Krystiannwk
ZRXBTC good level to entry the market It is quick look at this pair. There is consolidation after pair reached another psychological level after 10k which is 5k. It seems that it has hard time to go lover. There is triple bottom formation on 1H chart which may suggest bullish movement in near term. I;m aware that it is very fresh chart and technical analyst shouldn't be apply here but if U look to buy mentioned signals are suggesting that it is good time and if it will go lower U will risk not that much. I would suspect that the pair will try to beat 10k level one more time
Long
by Krystiannwk
QRLBTC possible 100% in profit It is risky trade probably like most of them. We can see here that the pair tried to breach solid support created by Daily GAPS but failed. This price action is suggesting that the pair should look for more space and move higher as there is not much resistance just before 0.00030000 mark. 10k psychological number, pair played with it for three weeks and eventually decided to move in other direction. If we switch to weekly chart this level wasn't pierced by any of the weekly candle which is suggestion that 10K has been defended.
Long
by Krystiannwk