I would like to develop some step-wise approaches to trade support and resistance, and I would value some feedback form more experienced team members. For support and resistance trading, assuming I have correctly identified such areas / lines, what might be the best trade designs and constructions steps to consider. I can imagine several ways:
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a binary structure where I would take a true / false position at the level of the support or resistance line expecting price to move away from that area. As it does so, I might manage profits by either set profit target or perhaps let all (or a portion of original position size) expire to either $0 or $100 depending on direction. Beyond identifying the level it would seem the key step would be aligning the true / false statement to the available binary levels. Knowing binaries move a great deal as expiration approaches, it would appear taking profits at a lesser target level might be more consistently profitable but would like to know what others may have observed.
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A spread structure where the initial step would be to again identify the support and resistance level and then use the scanner to identify a corresponding level with ideally a low distance to break even and favorable risk:reward. Profits could be taken as price moves away from that support / resistance area.
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Perhaps there are other trade constructions I should also consider or variations of the above so has to maximize the possibilities for each trade / trade condition.