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| Price reacts to round market numbers. When these numbers are struck during key intraday cycles, they often become swing pivots for hours of trading activity. One excellent way to find opportunity during the day is to scan your quotes for stocks with above-average volume, trading at or near major market numbers. Then pull up those charts to see how the numbers define the current price action. For example, whole round numbers such as 20, 30, 40 provide initial support during corrections. Follow a selloff through the round number into the x9 below it. As selling pressure eases, a stock will often pop back above the round number. Triggered stops that accumulate under market numbers drive this profitable phenomenon. |
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