Round Numbers in Daytrading? - Traders Hideout | futures io social day trading
futures io futures trading


Round Numbers in Daytrading?
Updated: Views / Replies:3,224 / 7
Created: by ikeaboy Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Round Numbers in Daytrading?

  #1 (permalink)
Elite Member
Stockholm
 
Futures Experience: Intermediate
Platform: NinjaTrader, Multicharts, Tradestation
Favorite Futures: US and Canadian Stocks
 
ikeaboy's Avatar
 
Posts: 59 since Jun 2010
Thanks: 21 given, 5 received

Round Numbers in Daytrading?

When trading the stock indices (ES, NQ, FDAX, CAC40,...) intraday do you consider round numbers like 50-levels or 00-levels?

I always thought such levels must be relevant but when you look at the different indices you see that actually all the big indices are correlated at a very high factor...

So when the market moves it moves in every indices very similar no matter at what round number price might be in one certain indices...

Considering this assumption looking at round numbers when trading is actually irrelevant?

What are you thoughts on that issue? (because I am considering removing the horizontal round numbers lines on my charts alltogether...)

PS: would you handle round numbers different with currencies?

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Sweden
 
Futures Experience: Advanced
Platform: NT6.5
Broker/Data: DTN, Mirus/Zenfire, Berkeley
Favorite Futures: ES, DAX, 6E, CL
 
jerry828's Avatar
 
Posts: 44 since Jun 2010
Thanks: 19 given, 27 received



ikeaboy View Post
When trading the stock indices (ES, NQ, FDAX, CAC40,...) intraday do you consider round numbers like 50-levels or 00-levels?

I always thought such levels must be relevant but when you look at the different indices you see that actually all the big indices are correlated at a very high factor...

So when the market moves it moves in every indices very similar no matter at what round number price might be in one certain indices...

Considering this assumption looking at round numbers when trading is actually irrelevant?

What are you thoughts on that issue? (because I am considering removing the horizontal round numbers lines on my charts alltogether...)

PS: would you handle round numbers different with currencies?

I consider whatever levels that has proven to be historically significant as sup/res.

But, no doubt that 00-levels are important thresholds for leading indicies such as Dow/S&P500. The proof for this can be found by looking at e.g. ES MP or daily charts a few weeks back. Remember that the market place is mainly consisting of human involvement, which is subject to the same tendency as everyone else to lay some extra importance on round numbers. Thus, you will often see fights taking place at these levels.

I would place less importance to round numbers in EU markets such as DAX, CAC40, FTSE, as I see them mainly as followers of the US indicies nowadays, rather than anything else.

Reply With Quote
The following user says Thank You to jerry828 for this post:
 
  #4 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,240 since Jun 2009
Thanks: 29,354 given, 83,237 received

I trade CL, and for sure .00 and .50 are very, very important levels. The first time price trades at that level that day you will see a very clear reaction to it. First, price tends to gravitate towards the level, and second there are usually a lot of stops at the levels so you will see it test, bounce, and re-test in a strong trend.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
The following 2 users say Thank You to Big Mike for this post:
 
  #5 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,698 since Oct 2009
Thanks: 3,041 given, 4,498 received

I think some instruments are more sensitive to round numbers than others. The Forex market is particularly sensitive to them. The S&P 500 is less sensitive so much that i don't consider them except for big fat round numbers such as 1000 or 1100. I know a commercial vendor that uses round numbers as a core component of his framework. His system does not use any other indicator than round numbers: The Trading Institute Reviews and Ratings | Steve Rising | Thetradinginstitute.com reviews

I started trading the Forex with his philosophy so i can assure you that round numbers can make you win money if you know how to tackle them.

Reply With Quote
The following user says Thank You to trendisyourfriend for this post:
 
  #6 (permalink)
Elite Member
Stockholm
 
Futures Experience: Intermediate
Platform: NinjaTrader, Multicharts, Tradestation
Favorite Futures: US and Canadian Stocks
 
ikeaboy's Avatar
 
Posts: 59 since Jun 2010
Thanks: 21 given, 5 received

thanks for your help guys... so i better still plot them on my charts - especially for currencies or oil... in the stock indices i rather have a look at round numbers from the us stock indices...

one other thing though - do you use the round numbers from spot or future market? i personally think that the spot market round numbers are the way to go...

Reply With Quote
 
  #7 (permalink)
Elite Member
Stockholm
 
Futures Experience: Intermediate
Platform: NinjaTrader, Multicharts, Tradestation
Favorite Futures: US and Canadian Stocks
 
ikeaboy's Avatar
 
Posts: 59 since Jun 2010
Thanks: 21 given, 5 received


ikeaboy View Post
one other thing though - do you use the round numbers from spot or future market? i personally think that the spot market round numbers are the way to go...

anyone any suggestions on what round numbers levels to use? from spot or future market?

Reply With Quote
 
  #8 (permalink)
Elite Member
Taiwan
 
Futures Experience: Intermediate
Platform: TradeStation
 
Posts: 40 since Jun 2010
Thanks: 6 given, 11 received

Monroe Trout discussed the round no.

Monroe Trout discussed the round no. effect(magnet effect) in New Market Wizards.


Based on my forward-testing experience, I do think that it works to certain extent especially in chaotic downtrend environment because there are many participants who got caught on the wrong side are rushing to the door to get out in turn exacerbate the downtrends making it faster to reach the round no.

conversely, if you see key levels being correct supported quicky and hold, you should go long quickly to capitalize on the situation.

Reply With Quote
The following user says Thank You to ptcm for this post:

Reply



futures io > > > Round Numbers in Daytrading?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
OK, you're daytrading. Do you have a dog ? MetalTrade Off-Topic 36 March 10th, 2012 01:03 PM
Psychology of Round Numbers Anagami Psychology and Money Management 2 April 4th, 2011 04:58 AM
Daytrading Insomnia Ryanb Off-Topic 12 March 8th, 2011 08:47 AM
Indicator that paints large round numbers? Trankuility NinjaTrader 3 February 14th, 2011 03:31 PM
Will daytrading keep existing ? MetalTrade Psychology and Money Management 16 June 25th, 2010 08:56 PM


All times are GMT -4. The time now is 06:19 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-17 in 0.13 seconds with 19 queries on phoenix via your IP 54.82.81.154