====== Trading around support/resistance levels ======

Large market players usually place orders around strong levels of support and resistance for various reasons. Above levels of support usually are clustered buy orders, while below resistance levels – sell orders. The purpose of this strategy is to use the presence of these orders and join the flow that is formed when they are activated. 

The set up:

  * identify the strong support and resistance levels, around which you can expect larger bids and offers
  * wait for a strong move towards the support/resistance level
  * buy at support, sell at resistance with a stop beyond the level.

You can trade this strategy via spot position or binary options (up/down). If you trade the spot market the following types of entries could be used:

  * Buy the support/Sell the resistance when the price first touches the level.
  * Buy/Sell at the second or third attempt (double or triple top on a tick or 1-minute chart)  
  * Wait for a break (2B) and buy/sell when the price goes back up/down. 

Test of resistnace traded via binary option 

{{:trading:resistance_trade.png|}}