Fade or follow at round numbers, a question with no universal answer

[Amanhasnoname]

Round figures attract orders, and price often reacts at them. Whether the reaction is a bounce or a break depends on context, and no rule works every time.

In ranging conditions, round numbers often act as boundaries, producing reversals. In trending conditions with strong momentum, they tend to be passed through with a brief hesitation.

Distinguishing the two environments is the main task. A higher-timeframe trend, tick rate on approach, and the speed of the approach all help. A slow grind into the level suggests a bounce, while a fast surge suggests a break.

Mixed strategies exist, such as fading the first touch and following a retest after a break. Each has trade-offs.

Recording what happens at each round number touched over a few months shows how the pair behaves. Some pairs respect the levels more than others.

Whichever side gets picked, deciding it before price arrives at the level beats improvising while the candle is moving.

At round numbers, is the default to fade or follow, and what conditions flip the choice?