A support and resistance indicator using round numbers to identify key psychological trading levels in Bank Nifty, helping traders spot potential price reversals and breakout opportunities.
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The Round Figure Indicator identifies critical psychological price levels based on round numbers in Bank Nifty trading. It plots three primary bands: a mid-band (black solid line) representing the major round number, an upper band (green solid line) acting as resistance, and a lower band (red solid line) serving as support.
Additional sub-bands are drawn with dotted lines at ±100 levels, creating tighter trading zones. When price touches any of these bands, it triggers an alert signaling potential market reversals or breakout opportunities.
Why it may be useful
Round numbers are psychologically significant in trading, attracting concentrated trader attention and institutional order placement. These levels often become critical decision points where market participants place limit orders, set stop losses, or take profit targets.
By systematically mapping these key psychological levels, traders gain insight into potential market turning points and can make more informed trading decisions with improved entry and exit strategies.
When to explore it
The indicator works best in markets with clear trending behavior and when Bank Nifty is experiencing predictable price movements. Traders should look for bounce trades near lower or mid-lower bands with bullish confirmation, and sell opportunities near upper or mid-upper bands with bearish rejection.
Breakout trades are also effective when price closes definitively above the upper band or below the lower band, preferably accompanied by significant volume. The indicator is most reliable when combined with additional momentum indicators like RSI or MACD.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
