Round numbers: Price values ending with .0500, .0600 etc
Very big round numbers: Price ending with .0000, .1000,.2000 etc
Importance:
Round numbers and very big round numbers can act as a supportor resistance level in some cases.
See the chart above, the encircled portions indicate the
rejection from round numbers. The price was coming up and when it reached the
level of 1.3000 which is a very big round number the direction of movement
reversed. Price couldn’t break that level and it fell down. This is a typical
example of round number acting as resistance. The price fell down till a level
of 1.2900 which is also a round number and found support at that level.
