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:
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:
Test of resistnace traded via binary option