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Trading The Numbers?

  • #1
  • First Post: Jan 20, 2018 2:59am Jan 20, 2018 2:59am
I'd be interested to know how many other Traders pay attention to the 00 20 50 80 Numbers when entering a Trade and how you use them?

I see a lot of Traders using Pivots, which by their nature change as Price moves.

Support - Resistance which, personally I find to ambiguous.

But, the Numbers always stay the same as Price ebbs and flows around them.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 20th Jan 18 EUR:NZD D1 Observations.png Size: 155 KB
Click to Enlarge Name: 20th Jan 18 EUR:NZD H1 Observations.png Size: 141 KB
  • #2
  • Jan 20, 2018 3:44am Jan 20, 2018 3:44am
Quoting stevepatt
... and how you use them?
IMHO, these RNs aren't tradable per se ... Like any level, you aren't trading the level but how the price react on it.

Example: instead of trading the touch (for a reverse entry) or a break (for a continuous entry), it is a better idea to let the price confirm the direction of its momentum given by the level. Either a reversal pattern after the touch (eg. engulf / pinbar) ... or a pullback on the RN after the break and a reversal in the initial break direction.
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Jan 20, 2018 4:49am Jan 20, 2018 4:49am
Quoting FerruFx
{quote} IMHO, these RNs aren't tradable per se ... Like any level, you aren't trading the level but how the price react on it. Example: instead of trading the touch (for a reverse entry) or a break (for a continuous entry), it is a better idea to let the price confirm the direction of its momentum given by the level. Either a reversal pattern after the touch (eg. engulf / pinbar) ... or a pullback on the RN after the break and a reversal in the initial break direction.
Did you mean here; candle close instead of touch-trading or anything else?
  • #4
  • Jan 20, 2018 5:18am Jan 20, 2018 5:18am
Quoting stevepatt
I'd be interested to know how many other Traders pay attention to the 00 20 50 80 Numbers when entering a Trade and how you use them? I see a lot of Traders using Pivots, which by their nature change as Price moves. Support - Resistance which, personally I find to ambiguous. But, the Numbers always stay the same as Price ebbs and flows around them. {image} {image}
All most all the support resistance, SD, pivot levels comes around 00 levels.
I would rather have a clean chat with 00 levels, should be good enough to make decisions.
on a postive roll...
  • #5
  • Jan 20, 2018 5:37am Jan 20, 2018 5:37am
Quoting LuizGuilher
{quote} Did you mean here; candle close instead of touch-trading or anything else?
Not only candle close ... but how the price (re)act after reaching the level.
MT4/MT5 EAs/Indicators/Alerts coder
  • #6
  • Jan 20, 2018 6:15am Jan 20, 2018 6:15am
Quoting FerruFx
{quote} IMHO, these RNs aren't tradable per se ... Like any level, you aren't trading the level but how the price react on it. Example: instead of trading the touch (for a reverse entry) or a break (for a continuous entry), it is a better idea to let the price confirm the direction of its momentum given by the level. Either a reversal pattern after the touch (eg. engulf / pinbar) ... or a pullback on the RN after the break and a reversal in the initial break direction.

Hi FerruFX,

Here's how I'm looking at it.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 20th Jan 18 GBP:JPY H1 Observations.png Size: 183 KB
Click to Enlarge Name: 20th Jan 18 GBP:JPY M5 Observations.png Size: 185 KB
  • #7
  • Jan 20, 2018 6:23am Jan 20, 2018 6:23am
Quoting Rmg
{quote} All most all the support resistance, SD, pivot levels comes around 00 levels. I would rather have a clean chat with 00 levels, should be good enough to make decisions.

Hi Rmg,

If you look at any chart you will see the Half Number also has a role to play.

The .20 and .80 act as an overshoot for the .00 Whole Number and also have their role.
  • #8
  • Jan 20, 2018 6:34am Jan 20, 2018 6:34am
Quoting stevepatt
{quote} Hi FerruFX, Here's how I'm looking at it. {image} {image}
Yes exactly. You are trading the reaction.
MT4/MT5 EAs/Indicators/Alerts coder
  • #9
  • Jan 20, 2018 7:12am Jan 20, 2018 7:12am
Mostly confirmation bias at work using these numbers.
  • #10
  • Jan 20, 2018 7:55am Jan 20, 2018 7:55am
Quoting SunTrader
Mostly confirmation bias at work using these numbers.
Hi SunTrader,

Is that a good or bad thing?
Attached Image (click to enlarge)
Click to Enlarge Name: 20th Jan 18 GBP:JPY M5 Observations 2.png Size: 215 KB
  • #11
  • Jan 21, 2018 6:31am Jan 21, 2018 6:31am
I look for a confluence of factors, including RNs; then see how feasible the setup is in line with my swing trading style.

Trade safe and prosper.

KP
Do your homework, follow the footprints of smart money
  • #12
  • Jan 21, 2018 6:49am Jan 21, 2018 6:49am
If you look for reactions at weird numbers 52, 61, 27, 13 You will start seeing them...
You can even draw random line on a chart.. Close your eyes, draw a flat line.. and price will seem to respect it, at some point in the future.
Try it.. You'll be amazed.
The only system that will work is one designed by and for yourself.
  • #13
  • Jan 21, 2018 7:21am Jan 21, 2018 7:21am
Quoting bloodpoodle
If you look for reactions at weird numbers 52, 61, 27, 13 You will start seeing them... You can even draw random line on a chart.. Close your eyes, draw a flat line.. and price will seem to respect it, at some point in the future. Try it.. You'll be amazed.

Hi Bloodpoodle,

I realise that I could draw random lines anywhere on a chart and Price would, at some time, react to them.

But, it is a fact that Institutions use Whole and Half Numbers to both "build" and "off load" their positions.

I'm not just entering Trades blindly at Whole and Half Numbers, there is some consideration taken when taking a Position.
  • #14
  • Jan 21, 2018 7:58am Jan 21, 2018 7:58am
Quoting stevepatt
{quote} Hi SunTrader, Is that a good or bad thing? {image}
Do you understand what confirmation bias is?

Look at your chart when that big slide happened starting down from 153.576 to below BRN of 153. Yes it did become resistance once it was pierced - but why wasn't it first support if BNR's are all that important.

When I learn something new about the markets I then look to see how I could be wrong or not as right as I originally thought. Rather than it worked here, and here and here.

Just sayin'.

But I do see in above post you also look for other confirmation rather than just randomly following BRN's by themselves.
  • #15
  • Jan 21, 2018 8:14am Jan 21, 2018 8:14am
Actually traders r humans [soon that may change] n humans r superstitious. what I know is wall street traders is taking care of moon/sun eclipses n some institutions seriously creating trade algorithms based on. So RN might work as well
WaBaS Where are Buyers and Sellers
  • #16
  • Jan 21, 2018 8:28am Jan 21, 2018 8:28am
Quoting mr.brown
Actually traders r humans [soon that may change] n humans r superstitious. what I know is wall street traders is taking care of moon/sun eclipses n some institutions seriously creating trade algorithms based on. So RN might work as well
Not only superstition ... Simply psychological.

Like said earlier BloodPoodle, you can draw a random line on chart and you definitely find some accuracy. So a 00 RN will have even more - psychological - affinity to traders.
MT4/MT5 EAs/Indicators/Alerts coder
  • #17
  • Jan 21, 2018 8:49am Jan 21, 2018 8:49am
Quoting SunTrader
{quote} Do you understand what confirmation bias is? Look at your chart when that big slide happened starting down from 153.576 to below BRN of 153. Yes it did become resistance once it was pierced - but why wasn't it first support if BNR's are all that important. When I learn something new about the markets I then look to see how I could be wrong or not as right as I originally thought. Rather than it worked here, and here and here. Just sayin'. But I do see in above post you also look for other confirmation rather than just randomly following...

Hi SunTrader,

Yes, I do understand what confirmation bias is.

I've been using these Levels for some time and always try to wait for the Institutions to show their hand before committing myself to a Trade Bias.

I have no idea which Levels are going to be used, in advance, I merely follow where "they" lead.

As long as I WAIT for the Institutions to show their "hand" there is a definite "edge" in Trading them.
Attached Image (click to enlarge)
Click to Enlarge Name: 21st Jan 18 GBP:JPY H1 Observations.png Size: 162 KB
  • #18
  • Jan 21, 2018 8:51am Jan 21, 2018 8:51am
A round number has no more credibility than any other number. As bloodpoodle correctly pointed out, any other number can do as a part of a trigger mechanism, because any and all chosen numbers have the same chance to react to them. So, take your pick on any number(s) and stick to them if numbers are part of your trigger system. The bottom line is....thinking that 00 etc is sacrosanct is actually no more than a fallacy.
  • #19
  • Jan 21, 2018 9:31am Jan 21, 2018 9:31am
Quoting Landline
A round number has no more credibility than any other number. As bloodpoodle correctly pointed out, any other number can do as a part of a trigger mechanism, because any and all chosen numbers have the same chance to react to them. So, take your pick on any number(s) and stick to them if numbers are part of your trigger system. The bottom line is....thinking that 00 etc is sacrosanct is actually no more than a fallacy.
Hi Landline,

Round Numbers and Half Numbers are used by the Institutions so we see more Swing Levels Originate from them.

So, in my humble opinion Whole and Half Numbers do have a greater role to play than other random Numbers.

As I have shown in the charts, I have posted, it's not just a matter of entering Trades from these Levels but waiting for Institutions to first show their hand.
  • #20
  • Jan 21, 2018 9:45am Jan 21, 2018 9:45am
Quoting Landline
A round number has no more credibility than any other number. As bloodpoodle correctly pointed out, any other number can do as a part of a trigger mechanism, because any and all chosen numbers have the same chance to react to them. So, take your pick on any number(s) and stick to them if numbers are part of your trigger system. The bottom line is....thinking that 00 etc is sacrosanct is actually no more than a fallacy.
sir i will highly recommend you to learn index options first and then come back to FX to learn more how single currency reacts to its opponent currency = to understand currency pairs

(off-course its your will to follow above things or let it go... may god bless you )
In the court of lord, only love and devotion is counted...
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