Stop Hunting at Round Numbers

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

I know that prices ending in 00 or 50 are round numbers that get targeted by stop hunters but what about a price ending in 20 or 15 (e.g. 0.9920 or 0.9915) ?

Thanks

2

In my opinion, these numbers shift over time. for example, I love the 80/20 levels but then for periods of time I see a stronger focus on 50 levels.

I would suggest draw your lines out at those 'key" levels and see what happens. Rinse and repeat :smiley:

3

I meant to add that if you want to know where price may be heading than think like a retail trader. Where would retail traders tuck there stop loss orders. Most likely x amount of pips above the recent high or x amount of pips below the near term low. That is where you will see stop runs.

Brokers and market makers know where stop loss orders are pooling up and that is the area they will target no matter which direction they bring the market in.