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Round-Number Rejectionthe 00 and 50 figures

Evidence: StrongBeginnerPrice Action · Support & Resistance

Orders cluster disproportionately at whole figures — 1.0900, 1.1000 — and at the half figures between them.

The setup: price pierces the figure with a wick and closes back below it. That rejection is the trade, with the next round level as the target.

This is an M1 setup. The target is small, ten to twenty pips, so the spread decides whether it is viable at all — and that should be the first thing you test.

Category
Price Action · Support & Resistance
Timeframe
M1 primary · M5 secondary
Suitable pairs
EURUSD · GBPUSD · USDJPY · USDCHF — tightest-spread majors only
Session
London and New York hours only
Indicators / tools
Horizontal lines at the 00 and 50 levels · ATR(14). No indicators.

Valid setup

S22 · ROUND-NUMBER REJECTION — VALID SETUP EURUSD · M1 · take-profit orders cluster hardest at rates ending in 00 (Osler, FRBNY order-book data) SHORT 1.08803 1.08850 1.08896 1.08943 1.08989 1.09036 1.09082 1.09000 — the 00 level 1.08950 — the 50 level TP1 = 1.08900 (next 00-adjacent level) TP2 = 1.08850 ENTRY on the close back below SL above the rejection wick 1R TP2 1 2 3 4 5 6 ① Price grinds up toward a whole big-figure level ② Approach slows — the last few candles get smaller ③ Wick pierces 1.09000 by a few tenths of a pip, then CLOSES back below it. Take-profit sell orders sitting at 00 are being filled, and they reflect price. ④ Confirmation close below ⑤ Entry. ⑥ First objective is the next round level down. On M1 this is a 10–20 pip trade — spread decides whether it is viable at all. 1.09011 1.09000 1.08977 1.08950 1.08900 1.08850 00 rejection

Exact rules

Entry

  • Draw the 00 and 50 levels on the chart — 1.0900, 1.0950, 1.1000.
  • Session filter: London and New York hours only.
  • Rejection: an M1 candle whose high is above the figure but whose close is below it.
  • Confirmation: the next M1 candle also closes below the figure.
  • Sell at the close of the confirmation candle. Mirror the rule when price approaches from below.

Stop loss

  • 0.20 × ATR(14) above the high of the rejection candle.
  • On M1 that is typically three to six pips. A stop that tight is only realistic when the spread is tight too.
  • Risk 0.5% per trade — but the small stop makes the position size large, so the exposure to slippage is large with it.

Take profit / exit

  • TP1 = the next 50 level below — from 1.09000 to 1.08950.
  • TP2 = the next level adjacent to a whole figure — 1.08900.
  • Time exit: if TP1 has not come within twenty M1 candles, leave. The momentum is gone.

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Trading carries risk and most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade. The chart is an illustration of the rules on constructed candles — it is not a record of a trade and not a backtest.