Bounce on psychologically important levels

 Bounce on psychologically important levels strategy based on some psychologically levels traders to “50 and two-zero levels “00”. The round numbers makes traders get nervous and therefore creates psychologically important levels of support and resistance that generate opportunity of trading. This strategy is for day traders and scalpers.

Indicators SMA 21.

Psychological Levels trading round number 00 and 50.

BUY signal:

When the price breaks through a psychologically important level ending with 00 or 50 and the candle is closed and it is red, checking for SMA to be pointing down (downtrend).

The strategy waits for the price to reach a level 15 pips below the 00 or 50 level and open a long position with a Stop Loss (default is 15 pips) below the open price and a Take Profit (default is 15 pips) above the “00” or “50” level.

SELL signal:

When a price breaks through a psychologically important level ending with 00 or 50 and the candle is closed and it is green, checking for SMA to be pointing up (uptrend). The strategy waits for the price to reach a level 15 pips below the 00 or 50 level and open a short position with a Stop Loss (default is 15 pips) below the open price and a Take Profit (default is 15 pips) above the “00” or “50” level.