Round Number Reaction Study

Round numbers - the .00 and .50 levels, or whatever spacing a trader is watching - get treated as meaningful support and resistance almost by habit, rarely by measurement. This script measures it: it scans the loaded history for round levels spaced at a chosen pip interval, finds the FIRST bar each level enters a bar's high/low range, and checks a fixed number of bars later whether the close reversed away from the level, broke through it, or did neither. Only the first touch of a level counts. A market grinding sideways across a level for ten bars would otherwise register ten touches of what is really one event, and inflate the sample with repeats of the same episode rather than adding new evidence. A level only counts again once it has left the recent range and come back. Results are split by the direction price approached the level from, because a level being tested from below and the same level being tested from above are not guaranteed to behave the same way, and a single combined reversal rate can hide that asymmetry. Notes and limitations - A bar that opens exactly on a round level has no defined approach direction and is skipped rather than guessed at; this only matters on instruments with very coarse price steps. - The outcome is judged from the close of the bar InpReactionBars later, not from the extreme reached in between - a level that was briefly broken and then closed back past it on the near side is scored a reversal. - This is a descriptive study, not a trading signal. It does not account for spread or slippage, and a reversal rate close to fifty percent on a small sample is not evidence the level matters. - A single wide bar can contain more than one round level; each is tested as its own event, which is correct but means the touch count is not the same as the bar count.

Script · MT5 · v1.0 · Free

Tags: Support & Resistance · Alerts · MT5 Script · MQL5 Source Code

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