Trading Big Numbers

[dodgers]

I like your style Bronte but I don't see any big numbers

How about significant numbers..??!

To continue your point, in a very broad sense every additional 500 pts on the SPI seems to have had a pull back of some form to its original level. 5500 here we come. :aus:

 

[Kauri]

Look after the little numbers and the big numbers will take care of themselves.

 

[Bronte]

You talking about round numbers?

6050 Record High 26th Feb 2007

 

[Sean K]

6050 Record High 26th Feb 2007

You sure it hit 6050? 2007 isn't a big number is it?

 

[Bronte]

Yes Basilisk, well done
Round numbers are in the group of what we call 'Big Numbers'

'Big Number' 6300
Record High 6299
Low 6175
50% 6237
Interestingly the 50% level provided some great Resistance.

 

[wayneL]

Battman,

Can you supply some statistical evidence of this big number theory?

 

[Bronte]

Battman64,
Can you supply some statistical evidence of this big number theory?

Good morning all
Yes we can wayneL.

Late yesterday we saw 6401 High on the SPI
Sycom overnight has been as low as 6367
SPI Chart to follow:

 

[constable]

Hey Bronte ive just got to say the first page of this thread is hilarious keep up the good work! Big numbers as in milestone as in psychological barriers or support im sure people trade these everyday when stocks pushes past or breaks through them if thats what you mean?

 

[Bronte]

We mean exactly what you say.
Thank you constable

 

[happytrader]

Hi Bronte

I agree the market loves round numbers.

Cheers
Happytrader

 

[Bronte]

Hi happytrader
Great to hear from you.
We have seen 6350 already this morning.

 

[Bronte]

We have seen 6350 already this morning.

SPI 1 min chart,showing..
"Big Number" 6400
Record High 6401

 

[CanOz]

SPI 1 min chart,showing..
"Big Number" 6400
Record High 6401

Bronte...great to hear from you again, i was thinking of you on the way home last nite...wondering...where did she go? Figured we hear something soon, given the approach to 6400..uncanny really isn't it. So when did you go short?

Cheers,

PS, those gaps usually get filled don't they? Will you fade that too?

 

[Bronte]

Bronte...great to hear from you again, i was thinking of you on the way home last nite...wondering...where did she go? Figured we hear something soon, given the approach to 6400..uncanny really isn't it. So when did you go short?Cheers,
PS, those gaps usually get filled don't they? Will you fade that too?

Hi CanOz,
Thank you for your kind words.
Uncanny isn't it (Battman6400)
We can not answer your above question....
for risk of being banned.
6330 Low

 

[caleb2003]

I've read the livermore book, very good read, so are we to assume that whoever gets to $100 1st will either resist there or if it goes over then it will fly?

 

[CanOz]

Hi CanOz,
Thank you for your kind words.
Uncanny isn't it (Battman6400)
We can not answer your above question....
for risk of being banned.
6330 Low

I've got it sitting at 6320 now, which is S1...i wonder if it will hold? Asian markets down today too, we might to go S2 this afternoon yet!

Cheers,

 

[Uncle Festivus]

Howdy,
So is Dow 13500 a big enough number?

 

[Bronte]

Howdy,
So is Dow 13500 a big enough number?

Howdy Uncle Festivus,
Yes 13500 would be a big enough number for us to trade off.
Trading Record "Big Number" Resistance is easy enough.
Just remember and adhere to your mathematics.

 

[wayneL]

Good morning all
Yes we can wayneL.

Late yesterday we saw 6401 High on the SPI
Sycom overnight has been as low as 6367
SPI Chart to follow:

Thats not a statistics.

Thats calling the "big number" after the fact. Why 6400? LOL this thread sitting here all this time waiting for an answer to my question... and waiting for the market to turn at any round number and SHAZAM! a big number.

Why not 6300 or 6500?

"Round Numbers" on the other hand, are a well known phenominon. But would still like to see the theory tested statistically. I don't see it that much in what I trade... not enough to more reliable than MACD or other such indicator.

If ypu wish to humble me just come up with some statistical "big numbers"

 

[wayneL]

Thinking more on this big/round number thing:

The SPI turned at 6401. But the SPI is a derivitive of the SP200 cash index which did not get to 6400 or a BIG number... Neither did the all-ords. So why does the SPI count as a big number but not the Actual cash indices?

Why would the index turn at a big number anyway? Do all these people with NAB, BHP and WPL think "Oh crap! The SPI has hit 6400... better sell now!"?

I can see the psychology in an individual name like "I'm holding Google till $400" and enough people thinking the same, But I still don't see it often enough, or significant enough to really take that much notice.

Why wasn't 1,500 resistance on the SP500? That's a nice round number? Why didn,t nasdaq stop at 2,500? I could pull up many more examples where BIG number mean nothing.