New Indicator: Round/ Psychological levels [Sonarlab]
Have you ever noticed that prices seem to stick to certain “round numbers” like $1250, $1300, or $1350? It’s not just your imagination — these round numbers can actually act as psychological levels in the market, influencing trader behavior and shaping price action.
But why do traders care so much about these round numbers? It all comes down to our psychological wiring. Humans are naturally drawn to symmetry and simplicity, and round numbers offer a nice, neat way to measure price levels. Plus, these levels often coincide with important milestones or historical levels of support and resistance, giving them even more psychological weight.
To help you take advantage of these psychological levels in your trading, we’ve created a free TradingView indicator that automatically plots round numbers on your chart. Whether you’re a seasoned trader or just starting out, this indicator can give you a valuable edge in the market.
Here’s how the Indicator works:
1. Install the indicator on your TradingView chart. You can find it in the public library by searching for “Round Numbers Indicator”.
2. Select your preferred round numbers and customize the appearance of the indicator to fit your chart. The default settings are already set good.
3. Watch as the round numbers dynamically adjust to the current price action, providing you with a clear view of the market’s psychological levels.
In the example below, you can see how the round numbers act as levels of support and resistance on NAS100 12500 resting around other key area's like: order blocks, fib level, daily and weekly open and Asian low.
As you can see, the round numbers provide a clear roadmap for the market, helping you to identify potential buying and selling opportunities.
So why wait? Give our free Round Numbers Indicator a try today and start taking advantage of these powerful psychological levels in your trading!