Sweet Spots

After placing a new indicator on my charts names “Sweet Spots” which plots a horizontal line every 100 pips (i.e. 1.23000 1.24000 1.25000 1.26000 etc), I’ve noticed nearly all my support/resistance lines lie within 20 pips of these lines. Is this co-incidence? am I plotting my support/restistance lines wrong? or are the support/resistance lines more likely to be these institutional numbers? Surely “smart-money” will be looking at the whole numbers

These whole numbers you are pointing out are usually of interest to many traders, and can be used in combination with other sound trading techniques. However, as you pointed out, you have found a +/-20pip variance from the 100 pip level. This is a gross 40 pip variance for ever 100 pips, and thus equal to 60% accuracy. Combine these levels with other technical tools and you should get a much better idea of where your supposed support and resistance levels are. Looking at whole numbers is not enough to merit trading ideas though.

I would never trade off these levels alone, same as I would never trade off support/resistance levels or any single indicator alone, but I do find it interesting that S&R levels fall within what could be described as zones

Sometime ago I had made a program to test exactly this. The results showed that in all pairs, the probability of a swing high or swing low to appear eg between x.xx95-x.xx05 were exactly the same as they were for it to appear between eg x.xx25-x.xx35. As a quick test, fire up an EURUSD monthly chart and check the last swings: 1.4939, 1.1876, 1.5144, 1.6037 etc. I’d say that the round number fascination shows only the extreme ability of the human brain to recognize patterns, even where none exist.