FulcrumTrader

I have looked at this software in the past and in the 1st and 2nd YouTube videos they make assumptions about market dynamics that are not the reality. This companies software can be useful for a trader to continue to understand the order flow process which is always a good thing....but some of there explained set ups have nothing to do with "retail" traders stuck holding inventory that is about to go 2 points underwater (hitting stops). What they did show in the second video of three was actually a level that had an "inventory grab" event. A large group of resting LONG inventory had been neutralized (shows as HEAVY sell side action as that LONG inventory went to neutral in a small several tick range) which many times will cause a pause in the market. As sellers that had sold inventory from HIGHER pricing levels have price trade down to lower zones of resting LONG inventory, they use this resting LONG inventory as the EXIT for the held sellers inventory from higher pricing levels. Sellers DRIVE price lower to the point where they can COVER OUT into the capitulating resting LONG inventory with minimal slippage. The market is constantly trading back and forth between zones of held resting INVENTORY....once I learned this, everything then made sense to me in the "Supply & Demand" driven markets. I myself watch this exact same information, but I use Cumulative Delta bars specifically so I can INDEX the Delta Thresholds or Zones of resting inventory. I ALWAYS want to know WHERE are participants holding resting inventory and WHAT will they do as price trades back to these levels of resting inventory (what I call REAL support and resistance levels BACKED by some actual significant inventory). I also use the Cumulative Delta bars to track who is in control of the order flow at all times and when "order flow transitions" take place....learning how to track the "Supply & Demand" driven markets imo IS the ultimate edge.

I have never cared at all how long price traded somewhere (TPO's).....but I do care is there any inventory resting at the levels I am tracking and who is in control of the order flow (Cumulative Delta).

I spent about 10 minutes on their website about a month ago so I missed that one.....thanks for letting me know, I may go order that.

I am glad UB posts his various comments and trading style information.....you can always learn something by taking a look at the way others are analyzing the markets. I feel that traders should conduct there own due diligence from information they pick up off trading forums. I think ET banning UB is completely pathetic (after allowing pure$hit on their forums for how long.....COMICAL!!!). I mean come on now, we all have to be protected from some big bad system trader who may be backdoor marketing??? I don't give a damn what UB is doing here on TL....I read his information and then do my own due diligence....simple, very simple. I don't need ANYONE to try and protect me from someone who may be conducting marketing ops.....that is my own responsibility. For the most part, almost everyone on these various trading forums is marketing SOMETHING.....their ideas, their ego, their forum, their this, their that, etc, etc, etc. I personally don't have the time to waste on who is or who is not trying to market something to me. I already KNOW almost everyone is trying to market SOMETHING to me, so just move on and deal with it. On a side note, tracking and following commercials trade activity in futures markets is some of the most powerful trading set ups I have ever found.....ignore their activity at your own risk!

Great Idea for the webinars.....thanks for that resource!

Right.....I was giving just one example (they way I currently use two data feeds).

Believe me, there are MUCH BETTER data feeds then TS.....it has to do with HOW the vendor handles that data BEFORE they pump it to your platform. Some vendor data feeds have bad latency, bundled or throttled reporting, etc, AFTER they get the data from the CME. There are a whole bunch of differences in how various data vendors handle the CME feed before they send it to you. Multiple data feeds to a platform can be one feed for indicator plotting/reporting (the really good feed) and the second feed for orders execution (the standard platform execution feed).....that is only one example.

BTW, just so you know....Mark Brown (known automated trader) has already been using this set up for some time now.

Check out TradeVec.....MANY sophisticated automated traders are starting to use this platform.

This market was ripe for the picking imo with the absence of significant resting SHORT inventory at the recent highs or at any levels above the recent high (market had not traded in the 1095's or higher in some time.....no one had resting SHORT inventory still held above the 1095's.....an inventory VOID). With the decent sell off so far today I was able to hit some good initial profit target levels with additional initial targets at the 1075.00 and 1070.00's. Below these initial levels, I will sit for a while to see if we can trade lower through some additional LONG inventory backed support levels before I take additional profits.....in the days/weeks ahead I will see if we can test that 1012's area next.

We finally had some new SHORT inventory accumulation right at the very EOD Wednesday and then into the after hours session going into Thursday of just over 30,000 ES contracts. With a continued weak US Dollar still trading near lows and then Oil making a run today, the equities BUY programs held the ES from testing any near term support today. As we traded into the final hours of the US cash session, you can see how the equities side BUY program activity eventually enticed the large resting SHORT inventory in the ES to go neutral...... Images | ChartHub.com Again, once the ES large resting SHORT inventory went neutral the market with a void of resting held SHORT inventory to drive into short covering was only able to make a 7 tick higher high. Then we have the cycle repeating as new sell response builds creating some new resting SHORT inventory. This new SHORT inventory was also then right away driving into SHORT covering as equities side ran some partial BUY programs again.....and finally right into the globex close we had another new sell response with another new group of minor resting SHORT inventory. Tonight in the lower volume after hours session as the EU trades, I have sold into the rally to the 1095's to this point for my longer term position building. Since we remain with minimal resting SHORT inventory going into the pre-market and then US cash session tomorrow, I remain a willing sell side participant. The market at these high retail pricing levels needs the resting SHORT inventory zones as the means to advance the market through short covering rallies (usually enticed through cash session BUY program activity). These are the typical patterns that I see frequently prior to price trading back to a level of significant inventory support (where buyers would be willing to join the market again at better pricing levels than previously offered near the recent highs). This is the market behavior that I actually enjoy watching play out as the "supply & demand" picture starts a transitional phase. 2008 and 2009 and been filled with these type of transitional events and I do not see anything going forward for the remainder of the year into 2010 that should dimish this activity (at least not with all the financial variables in the world economies ahead....currency shifts, additional bank failures, continued hyper-dimensional government spending, etc, etc, etc....LOL!).

Have a HOTTIE from a local dancing establishment come over and record some sounds for you!

"never get out of the boat......." LOL! :o Apocalypse Now Wavs Sounds Quotes - Movie Sounds Central

I LOVE these...... "HOOOOAH!" and "NO, I'm just getting warmed up" Scent of a Woman Wavs Sounds Quotes - Movie Sounds Central

Yes sir...I will be in Vegas again very soon and I am looking forward to it (in the next week or two)! I agree there is a lot of "scared" money still on the sidelines in cash/bonds, and there is a lot of money running in commodities at this time (like Gold, Oil, etc). We also have the "Dollar Watch" game going on now that has been helping equities buy side flows during this recent rally. All I am setting up for at this time is to catch an initial move (last one was just over 60 + points down to the 1012.00 level), so if it turns into an extended downside move going forward then that will be just fine with me....so I am starting to take my shot with the current Delta Volume Distribution picture that I see.

Brilliant posts sir.....just brilliant! Your posts are one of the very few that I follow on the various trading forums day to day.....thanks for you contributions! Today as the ES traded beyond the 1086.00 level we had finally neutralized the last group of resting held SHORT inventory from "commercials" that I had been tracking. As equities side continued to fire off BUY programs towards the close today, the last group of significant SHORT holders in the ES finally bailed (this was SHORT inventory previously "initiated" in the 1072.75's to 1076.75's range of price). This is what I call an "inventory grab" event, and due to this taking place I started to ramp up a longer term SHORT trade in the ES today. Going forward, I will be an aggressive seller in the market as I see decent sell response while I try and build a longer term SHORT position to full size. http://www.charthub.com/images/2009/10/14/FulcrumTrader_Z_11 (the orange horizontal lines on the lower Cumulative Delta pane show the last group of SHORT inventory I had indexed....you can see that zone was neutralized as we traded through the 1086's today) With an absence of significant resting SHORT inventory now in place in the ES, it will take newly initiating BUYERS in the ES to advance price (those willing to pay very high retail prices of the upper most pricing levels offered in the current range). Also, now the equities markets with their BUY program activity do not have a large group of held resting SHORT inventory in the ES to drive into SHORT covering rallies (as the held SHORT positions capitulate their inventory adding to the buying order flow as they cover and go neutral). Other than the sell response as we finished out the globex session today, there is a void of resting held SHORT inventory in futures. These situations I have found over the past years do many times create pivots in the market....we will see.

Yes...Cumulative Delta is the realtime no lag order flow conviction watch, to see who controls the order flow at any moment. Someone once told me that watching Cumulative Delta was like high tech tape reading and I can agree with that to a point.

Yes that is Cumulative Delta down to the most basic order flow tracking look. The videos of course do not show the macro use of Cumulative Delta which is the tracking of accumulated zones of resting inventory.....that is a whole separate subject.

Tracking supply and demand is done on both a micro level for intraday trade set-ups and on a macro scale when tracking zones of large resting inventory. Also, another key component of trade entry determination is watching for what I call order flow transitions. This is down to the very basic level of watching for the transitional shift in the bias of the order flow. When commercials initiate trades they create order flow transitions which can be clearly seen as the bias within the order flow suddenly shifts. This is great Cumulative Delta information to track when getting ready to initiate a trade, so that you join the new conviction and bias within the order flow. Scalpers need to join order flow momentum to be in proper short term alignment with the bias of the traded volume for higher probability trading. Here is some examples of tracking an order flow transition for scalp trade entries..... TL! Videos

You can...you initiate and build long term positions as you track commercials building large positions themselves. For the last two days in my longer term accounts I have started to build up positions to play the SHORT side in the S&P500. Track the "supply & demand" of the commercials activities and you will have some excellent swing trading set-ups month after month.

Correct......I call this order entry method by commercials as "Phalanx System Entries" and I see this often during an inventory grab . This is why I call them Phalanx System Entries; [ame=http://www.youtube.com/watch?v=cgpQBZF2sZQ&feature=related]YouTube - Phalanx (CIWS) Block 1B LPWS Testing and Firing[/ame]

Correct.......at zones of resting inventory (areas I call Delta Zones).

Resting inventory support & resitance for the "where" to take a trade from is already determined through Cumulative Delta volume distribution tracking....the scalp indicator set-up is used for "at the moment" final trade entry determination.

Here is one of my trade entry set-up charts where I do use some Jurik indicators for reference entry criteria as I look at Price / Cumulative Delta / Smoothed CD in the three panes shown. Images | ChartHub.com So far I am pleased with the Jurik indicators for my use to reference points for trade entry criteria while tracking both Price and Cumulative Delta.

Yes indeed....Vegas will soon be very nice and I am looking forward to it! I am really looking forward to checking out City Center in November when the Online Trade Expo is going on at Mandalay....that will be very interesting to see.