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Round numbers in charts
Traders focus on round numbers
Round numbers often serve as support and resistance. They act as a magnet for the market price. Volume charts show that a high proportion of the trading volume is done around round numbers.
This tool allows you to focus on and use round numbers more efficiently.
Highlighting round numbers in your charts
You can indicate the round numbers in the chart you prefer to see. Select, for example, 5 as the unit for the round numbers and 130, 135, 140, 145 etc. will be highlighted. Five colors are available.
You can also define the size of the visual zone above and below every round number. When the market price approaches a round number it is easy to see.
This example shows the Dow Jones index. The trader selected 500 as the unit for the round numbers. Hence 34.000, 34.500, 35.000 are highlighted in the chart. Other colors can be selected. Notice also the zones above and below the round numbers.
This forex example shows the EUR/USD. The trader selected 0,0250 as the unit for the round numbers. Hence, for example, the round numbers 1,0000, 1,0250, 1,5000, 1,0750 and 1,1000 are highlighted.
Get alarms based on round numbers
After you selected the size of the zones around the round numbers, you can opt to receive an alarm. The alarm is triggered when the market price moves into the zone. A choice of alarms is available (pop up, sounds etc.).
- Highlight round numbers of your choice in the charts.
- Set zones around the round numbers.
- Select a color.
- Set an alarm when the market price enters the zones.
- Open the chart of the instrument you wish to trade.
- In the WHS Proposals folder, select round numbers in the Tools section.
- Define the setting in the Designer Dialog window.