Whole Number Resistance Support Levels
Most traders use swing points, rectangles, fibonacci levels, etc. to identify resistance and support levels. But what about the obvious support and resistance levels at whole numbers? Have you noticed that your stock will often use whole numbers to begin sharp counter moves when day trading? These counter moves are a natural reaction to whole numbers as traders are confronting significant psychological barriers as new price grounds are tested. Whole number levels have absolutely nothing to do with complicated technical analysis chart formations or fundamental analysis.
What are the key whole number levels
For investors and swing traders you will want to keep an eye on decade whole numbers (10,20,50,100, etc.). While day traders will want to focus on every whole number (1,2,3,4, etc.) for stocks greater than 10 bucks and for those under 10, you will want to keep a close eye on every 50 cent increment (5.50, 6, 6.50, etc.). Remember, you should not buy or sell a whole number support or resistance level blindly, but if a stock begins to fail at $100, don't wait for the fibonacci level at $100.48.