As we know by now, support and resistance areas in the market are created by more aggressive buyers stepping into the market and driving prices higher or more aggressive sellers stepping in to drive prices lower. By this logic, it’s clear to see that a great deal of orders reside around key support and resistance zones.
We assume that the larger the level, the larger the orders/volume in that area. This condition is why we tag some of these areas as our manipulation points, as nothing condenses liquidity into a specific area like previous support/resistance.
There are few ways with which we select manipulation points. Some are simple and as easy as support and resistance that anyone can see. But, at the same time, others are a little more complex, as they involve underlining risk management decisions. This article breaks down the selection process as they go from simple to the most complex.