The video shares a popular Forex trading strategy called round number trading, which is based on traders placing orders near round number levels. The strategy can cause temporary price reversals or breakouts due to increased buying or selling pressure. The video provides rules and tips on how to use a specific indicator for round number trading, including identifying entry and exit points, setting stop loss and take profit levels, and avoiding trading against the trend. The video also recommends subscribing to the channel and joining the telegram channel for further support.

Forex Round Number Trading: A Popular Strategy

Forex round number trading is a popular strategy used by traders in the Foreign Exchange Market. In this article, we will discuss the concept behind this strategy, trading rules, and the use of four indicators to implement this strategy.

What is Forex Round Number Trading?

Forex round number trading is a strategy where traders place buy or sell orders near round number support or resistance levels. The theory behind this strategy is that round numbers act as significant psychological levels for traders and can act as support or resistance levels.

The Basic Premise of Round Number Trading

When the price of a currency pair approaches a round number, traders expect there to be increased buying or selling pressure. This can cause a temporary price reversal or breakout. Traders who use the round number trading strategy typically use technical analysis to identify potential entry and exit points.

Trading Rules of the Round Number Indicator

Using the round number indicator can be a simple and effective way for traders to identify potential trade opportunities and manage their risk. The following trading rules can be applied when using the round number indicator:

1. Sell Arrow Signals

When you receive a sell arrow signal near the round number line on the chart, the slope of the big black line should be downward, indicating that the market is in a downtrend. If this condition is met, you can immediately enter a sell trade. Place a stop loss on the round number line above the arrow candle and take profit on the next round number line.

2. Buy Arrow Signals

When you receive a buy arrow signal near the round number line on the chart, the slope of the big black line should be upwards, indicating that the market is in an uptrend. If this condition is met, you can immediately enter a buy trade. Place a stop loss on the round number line below the arrow candle and take profit on the next round number line.

3. Repainting Indicator

It’s important to note that this indicator is a repainting indicator, but it does not have any significant effect on trading. However, if you want to go with a more conservative approach, you can ignore the first arrow signals received on the chart and take trades on the second or third signals.

4. Avoid Trading Against Trend

Don’t take trades against the trend. This indicator works best on any time frame but it’s important to avoid trading during news release time. The system works on Forex indices, stocks, and crypto.

Live Trade Example Using the Round Number Indicator

Let’s take a live trade example to understand the effectiveness of the round number indicator. We have received a perfect buy trade setup as per our recommendations, with a buy arrow signal received near the round number line on the chart and the slope of the big black line also upwards indicating that the market is in an uptrend. We place the stop loss and take profit as per our recommendations and wait for the trade to close.

In this live trade example, we have won the trade, and we can now wait for another perfect signal to enter the market again.

Conclusion

Forex round number trading is an effective strategy for traders to identify potential trade opportunities and manage their risk. Traders can use the round number indicator with technical analysis to identify potential entry and exit points in the market. Remember to avoid trading against the trend and not to take trades during news release time. We hope this article has been useful in understanding the basic concepts of Forex round number trading.

Thank you for reading and good luck with your trading!