Right......playing in the middle of the road can get you run over (counter-trend). Now I have no problem taking a trend following divergence entry in the middle of the road, within the context of a trending market at the time (continual stong order flow supporting a price movement of 5 points or greater since last reversal pivot).
I am not going to cover all my reasonings for determing a "Delta Zone", but this should help you in what to look for as you plot/index zones of support/resistance. http://www.charthub.com/images/2009/05/22/ES_2.png
Statistical significance must play an important role here, as I believe that the inventory zone is not strictly a shield/barrier as much as it is a proxy for drawing a decision on price action in the zone. My employer, Keyser Soze, would be most grateful, thank you! D.
AMT, I'm curious what a day in your life is like. It seems like you are always "magically" at your computer when a great trade presents itself, whether it be during market hours or in the middle of the night during AH (Eur Session). Are you constantly tracking the markets with a hendheld device, do you set up alerts, when do you sleep?