Gold finished the week right around the 4,000 mark, and every chart on the internet seems to have a line drawn there. That makes it a good moment to ask an honest question about round numbers.
Some prompts:
1. Do you treat round numbers as exact lines, or as zones (say, 20-30 dollars either side in gold, 20-30 pips in FX)?
2. Have you ever measured it? For example, counted how many times price reacted at a level versus sliced through it over the last year.
3. Does a widely watched level help you, or does everyone seeing it make it a place where stops get run?
4. If you trade around it, do you wait for a close beyond the level, a retest, or something else?
No signals please, this is about method. Related reading: /blog/support-resistance-zones-not-lines and /blog/backtesting-honestly-for-retail-traders. What does your evidence say?
Round numbers like 4,000 in gold: do they actually act as support for you?
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