Round Levels Indicator. An additional trader's assistant in identifying significant support and resistance levels
Round levels in Forex act as support and resistance levels and look like round numbers. An example of the EURUSD pair's round levels will be the zones 1.10000, 1.13000, 1.45500, 1.50500. As a rule, rounding occurs to 500 points by five decimal places. This is the average value that the price can pass before the correction starts. Zones that are multiples of 500 points have a short-term value and are relevant for hourly timeframes. In a given time frame, they can show the properties of short-term support and resistance.
Round levels are multiples of 1000; in the trading community, they are called Figure. Such zones, for example, 1.11000 for the EURUSD pair, are capable of acting as a consolidation zone for a currency pair in the medium and even long term. It is not at all necessary that the price will bounce up to a point from this level, but the fact that the currency pair will try this zone several times from the beginning as support, then as resistance or vice versa, is practically guaranteed.
This is because the construction of support and resistance lines is a subjective application of technical analysis rules, depending on the trading system, they differ for each trader. Round levels, on the contrary, are the same for all, all trading participants pay attention to these zones, and therefore, the strength and significance of the Figure as a place of possible correction increases significantly.
It will not be difficult to mark round levels on the chart even for a beginner. Nevertheless, in terms of energy consumption and distraction of attention to secondary tasks, this is an unnecessary waste of time and attention. A simple and convenient Round Levels indicator has been created to solve these problems.
This algorithm can be called a secondary auxiliary tool. All his calculations are reduced to the visualization of round levels, which the trader indicated in the indicator parameters.
The following parameters are available for editing in the settings of this tool:
Levels - the number of circular levels to draw in each direction (up and down);
Interval is an interval in points between the round levels. For example, a default value of 100 points means that the price level will be considered round every 100 points;
ZoneWidth is the width of the zone around the level in points.
The Round Levels indicator helps you spot reversal or trend continuation patterns that form around psychological support and resistance zones. It is useful to use it in strategies and methods loaded with various information, where this tool will help to facilitate and visually simplify the perception of psychological price levels.