Key Levels and Zones
Key Levels + Zones
Indicator cleanly displays even numbered price levels: “00s” and “50s” . Additionally you can display “Mid-Lines” which are preset distance levels on both sides of the even numbered price levels (set to 12.5 pips by default). This 25-pip zone that straddles each even numbered price relates to where many traders place their stops and therefore can be a risk “Zone” to steer clear of when placing your stops. The zone also acts as support and resistance.
Indicator provides full custom control over the level lines color and style, as well as the zone transparency.
Traders will often call these whole number intervals ‘double-zeros’ (00's), as these prices are at even numbers such as 1.31000 on EUR/USD, 1.57000 on GBP/USD or 132.00 on GBP/JPY.
Some traders will take this a step further by looking at the number directly in the middle of these whole numbers or ‘the fifties’ (50's).
These levels, such as 1.31500 on EUR/USD or 131.50 on GBP/JPY can often come into play in the same manner as the ‘double-zeros.’
For more info on key levels, see dailyfx.com article: WHAT ARE PSYCHOLOGICAL LEVELS AND HOW DO THEY WORK?
Psychological levels are market price levels which are often key levels in forex denoted by round numbers. These round numbers frequently act as levels of support and/or resistance.
Rider Capital Group