Lets assume I have bought 100 units of a certain stock for 100$ each,and my target is 110$. The stock keeps increasing and gets stuck at 105$ because of a strong resistance line, it keeps hitting 105 goes back to 104 and keeps oscillating, (assume some traders algo is causing this).
Now what if I place an order at 106$ for lets say 20 units of that stock, and since its higher than LTP it will get executed immediately and the LTP will now show 106$. This will mean the resistance is broken and naturally algos/traders will go in a buying frenzy and I can hit my target of 110$, will this strategy work, does this have a name? I guess the same strategy could be applied to break support lines.