Most traders look at some form of support and resistance. Lets ignore the fact that some so-called support and resistance is neither support nor resistance and talk about why a real support or resistance does not hold.
With the evolution of electronic trading, more information is available. In earlier times, the retail trader was at a great disadvantage to the institutions and the so-called smart money. Now, we can all be smart money albeit that we may trade smaller size than the banks and hedge funds, not to mention the HFTs. Technology has become cheaper and accessible to us all.
So the answer to the question that I posted in the heading to this post and which was asked by a blog reader in an email:
I had a challenge figuring out these longs today in ES, because market was trading right into resistance, and the risk / reward that i was measuring didn't favor the longs at those points.
I'm wondering how I misread the situation. (Please see attached)
The answer is very clear both to the topic post and to the email: Its what is happening with the order flow that breaks support and resistance and also what tells me when the support or resistance is likely to hold. One of the tools I use is the volume imbalance between the BID and ASK deltas. I use a number of other order flow tools.