Psychological Levels

Concept

Psychological levels are round price numbers where traders naturally place orders. The "rounder" the number, the stronger the level.

• Major: 1.0000, 100.00, 50000 (BTC)
• Secondary: 1.0500, 105.00, 55000
• Minor: 1.0550, 105.50, 55500

Why They Work

• Traders place stop losses at round numbers
• Take profit orders cluster at round levels
• Institutional orders often target round figures
• Self-fulfilling prophecy effect

Trading

• Watch for reactions at psychological levels
• Combine with other S/R for stronger zones
• Expect stops to be hunted at round numbers