Round numbers (1.3000, 50000, 4500) act as psychological magnets. Trade reactions, bounces, and breakouts at these institutional levels.
- Identify major round number (00, 50, 000 levels)
- Wait for price to approach level
- Look for rejection wicks or absorption on first touch
- Enter on confirmation candle in rejection direction
- Stop beyond the round number level
Round numbers ending in 000 are 3ร more powerful than those ending in 00. Options gamma exposure often clusters at these strikes.