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The idea of this directive is that often you might want to define different behaviour when you drop an element on a different part of the target. You might, for example, want to insert the item above or below the target in a list if it is on the top or bottom of the target element. However, if the drop happens near the middle of the target element, you might want the item being dropped to become a child of the target. These directives allow you to define that behaviour in a declarative way.
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