If you dial back through the thread you’ll note where we’ve regularly prompted & commented on keeping a close beady eye your round numbers/figures when prices begin ping-ponging around in scrappy fashion with limited follow through.
You’ll get a clearer view of the field via 60 or 120 minute charts, particularly if you can get a 5-7 day view on those time graphs. If you have the horizontal round numbers plotted you’ll see how they hug the action whenever prices begin stretching out into mini-trend mode.
One chief reason being, punters like to place & trail stops around those levels & options are layered into & out of the big numbers, attracting large activity.
Use the session (day & week) highs & lows as a marker & see how often they line up with, & contain prices in close vicinity of the round numbers/figures.
One way of executing bets in tandem is to leg in on breaks below (or above) the session highs & lows & trigger below round numbers when betting the long side & above round numbers when betting the short side, so you’re attacking these important levels ahead
of that order volume.
If sufficient stop traffic is clustered & layered into & above or below these commonly punted levels you’ll get a nice ride on the short-term momentum flows as they drive prices into the dominant orders.
Quite often that momentum will catch a back draft for a few sessions & if it’s flowing into the sterling or euro crosses (via cad/aud/kiwi/swiss) it can travel 3, 4 & 5 handles very quickly before it begins to exhaust, consolidate & either continue or reverse.
Just take a look back at those cross instruments since 4th quarter 2018 as an example to see what I mean. They’ll be a lot of false dawns where you’ll pick up scraps (50-200), but when they start rolling they’ll return some pretty decent odds for your risk outlay.