In finance, psychological level, is a price level in

technical analysis In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the sam ...

that significantly affects the price of an underlying

security" \n\n\nsecurity.txt is a proposed standard for websites' security information that is meant to allow security researchers to easily report security vulnerabilities. The standard prescribes a text file called \"security.txt\" in the well known locat ...

, commodity or a

derivative In mathematics, the derivative of a function of a real variable measures the sensitivity to change of the function value (output value) with respect to a change in its argument (input value). Derivatives are a fundamental tool of calculus. ...

. Typically, the

number A number is a mathematical object used to count, measure, and label. The original examples are the natural numbers 1, 2, 3, 4, and so forth. Numbers can be represented in language with number words. More universally, individual numbers c ...

is something that is "easy to remember," such as a rounded-off number. When a specific

, commodity, or

reaches such a price,

financial market A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial market ...

participants (traders,

market maker A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the ''bid–ask spread'', or ''turn.'' The benefit to the firm is that i ...

broker A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confu ...

investor An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Type ...

s, etc.) tend to act on their positions (buy, sell or hold).

Examples

Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...

Index - $14,000.00 - the all-time high psychological thousandth level as of 11/9/2007. Also known as "Dow 14,000" # Crude Oil (light, sweet) - $100.00/barrel

References

As used by finance analysts and business reporters: *https://web.archive.org/web/20110606031923/http://www.thestreet.com/_yahoopi/markets/marketfeatures/10260856.html?cm_ven=QUIGO&cm_cat=FREE&cm_ite=NA *https://web.archive.org/web/20071114063411/http://www.tradingmarkets.com/.site/eminis/commentary/guestcommentary/-71686.cfm *http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Euro_and_Aussie_Topping__1193913286650.html *http://mobile.bloomberg.com/news/2011-12-09/euro-may-test-2001-low-versus-yen-ichimoku-suggests-technical-analysis *http://mobile.bloomberg.com/news/2011-06-30/colombia-peso-volatility-falls-as-traders-bet-on-central-bank-intervention

*https://www.cnbc.com/id/45720928/Markets_May_Play_Jilted_Lover_in_Euro_Zone_Drama *http://money.cnn.com/2011/02/01/markets/markets_newyork/index.htm

External links

Psychological barriers in gold prices?
Behavioral finance {{econ-stub