This is one of the settings that professional traders look for on a daily basis.
Propensity
“Tilt” is a term used by daily traders. It refers to relying on an offer or offer. In other words, if the market has oscillated between 5 and 10 and is currently trading 9 bid / 10 bid, traders who are short 8 and 9 are leaning towards 10. They expect the bid to hold. If it looks like it’s going away, they will try to buy 10s when they leave. Other traders are also looking to buy dozens because they know shorts are “leaning” on them. This means that 10 is probably a good place to get the upper hand. However, this is also a place where big traders make moves.
A trader can be long at 8 and have the bid at 10. When he gets a strong bid at 9, he raises his bid at 10, then turns around and makes a bid at 10 (this is called flipping) and this causes others traders buy instantly at 11 and 12. Virtually no contracts are trading at 10. In this situation, the shorts are down the river. They were looking to risk 1 or 2 ticks and now they are forced to cover a loss of 4 or 5 ticks. Other people who did not have a chance to reach 10 are going to buy 12 and 13. So you have to anticipate. If you think it’s going to go away, just buy all 10. If you don’t get them, you won’t want to buy 14. 14 is where the flipping guy will be sold. If you miss it, you miss it.
By the way, most of the time these points are not support or resistance levels on a chart. There is no technical reason for someone to buy or sell there. You will never know that traders are leaning on price unless you know how to read the order flow. And if you don’t know that traders are leaning on a price, you can’t take advantage of that setup.