FulcrumTrader

Yes there was good trade intensity with the trade to the 991's followed by a very nice "order flow transition". Also, that final price rotation off the 999.50 level finished with good sell response after a period of SHORT inventory accumulation; Images | ChartHub.com UB...I agree those were the two best trades of the day and I really like how you visualize the Transaction Level Analysis.

Excellent sir! Keep me informed of your progress.

BTW, of the few indicators I do use in my trading, I do like the Jurik JMA & VEL tied into my Cumulative Delta candlesticks for scalp entry set up reference points.

Thanks.....I probably REALLY confused everyone with that last post....LOL! :hmmmm:

Accumulation of held resting inventory by commercials has the same behaviors at zones of price that become support in the market or at zones of price that become resistance. Commercials seem to handle the building resting inventory independently from their other trades around the range of price that contains the zone of price which is the cost basis for the held main position (and this made sense when I first started tracking the Delta Zones of resting inventory years ago.....the commercials are made up of separate groups all doing about the same thing at about the same time as they accumulate positions in the same fashion but independent of each other). There are definite biases of trade activity in the order flow as these positions are developed over multi-day or multi-week periods of time prior to the enabled breakout move of price AWAY from their held position cost basis (of course the eventual price move is in their intended trade direction....like we just had yesterday, very common enabled move of price in their intended trade direction). Another continuing pattern which almost seemed counter intuitive at first, but then made sense over time was how commercials will ALLOW price stretch away from the overall cost basis of their held inventory. After looking at this activity over and over again and thinking about Auction Market Theory it did eventually make total sense to me. Commercials can't improve the cost basis of a large held position without the rotations of price away from their held position to ADD inventory with "price improvement". As price is then driven back to the mean of the cost basis and through into the intended direction of their held position, they can then thin out positions previously entered at pricing level less advantages to the remaining held inventory. The commercials allow price to continually rotate around the cost basis of their held positions, as they make some profits on less beneficial positions covered after they have added new inventory beneficial to the held position....this is the behavior of the position building phase prior to the enabled driving of price away from the held position for the big score. I do know exactly how counter intuitive a lot of this commercial activity seems at first, but in conclusion let's just say the commercials are very active in the realm of going forward price activity once they start building large resting inventory.... Oh, and you will not find any of this type of market dynamics information in any trade books like "Mastering the Trade"......LOL!

Tams, So far I have never seen an actual working Cumulative Delta candlestick study in TS live (for the 6 years I have tracked and traded with Cumulative Delta). I would really need to watch the indicator live for a while (hour or two) to come to a proper conclusion. For Tradestation, the Cumulative Delta candlestick study set up the way I use it with Investor RT is kind of like UFO's....I know they are out there but I have not yet been offered a ride! I myself would LOVE to have a proper CD candlestick study for TS so if someone has one that works that would be GREAT! Also, to properly track CD you really need the candlestick format with multiple days of accumulated plotting....that is a must in my book! BTW, an ideal set up would be Zenfire or DTN.IQ feed pumped into TS with a proper CD candlestick study that can look back at least 30 days of bid/ask data!

Talking about how to use Cumulative Delta is not marketing, but at least now someone in the futures trading community is making traders aware of the possibilities! Cumulative Delta is a very good parsed volume study and it shocks me how few know how to use it.....oh well.

I track the Cumulative Delta from the first day a contract trades going forward for my longer term CD tracking, but that is not really needed for those looking for basic intraday set-ups. I use Investor RT with DTN.IQ feed for my primary intraday Cumulative Delta tracking, and the historical bid/ask data goes back almost a month which is perfect for 95% of my needs. There is also some great new features ahead for Investor RT so I am looking forward to the expanded capabilities. "Linn Software is also working with Zen-Fire/Rithmic to enable Investor/RT clients who have a Zen-Fire/Rithmic brokerage account to trade directly from Investor/RT." Investor/RT - The Trader's Ultimate Tool Box - What's New in 10.0

BTW, the commercials I have been tracking these past weeks who have been building the 30,000 contracts SHORT in the ES sure paid themselves well today! Oh how I love this game!

Hello Sir! WOW...that reminds me....I owe you an email response from the other day!!! I think the best way I can explain the inventory accumulation game is in a live chat format, so as you ask questions I can explain right away in a more efficient manner. I will send you some information on what day will work best for me to set this up with you! Look for an email just after the close today and I will try and set something up for this week. :thumbs up:

By far the most direct realtime method to track commercials activity (mainly position building inventory accumulation) is watching and then indexing Cumulative Delta Thresholds throughout the trade day. Tracking only increased overall volume activity above median levels can be deceiving. There may be order flow equilibrium withing increased overall volume rates, but the important item to track is the conviction within traded order flow....this is accomplished with Cumulative Delta. I do not really care how much overall volume trades most times, no I just want to know the conviction within the traded order flow. I want to know who is in control of the volume flow as parsed through Cumulative Delta. When a new high or a new low for the day is tested I want realtime indications of who controls the order flow, buyers or sellers. When a tracked zone of resting inventory support/resistance is tested intraday, I want to know what is the realtime demand at that level. I have in the past filtered order flow trade size for tracking demand at various zones of price, but I have found tracking all traded order flow position size combined works just perfect.

So far the best chart set-up I have found to properly track Cumulative Delta is Investor RT Pro with DTN.IQ feed (which has been even more sharp since their feed upgrades). I have decent historical look back for the Cumulative Delta candlesticks with Investor RT Pro, and they have the ability to overlay some indicators onto the Cumulative Delta plot if that is something your into. Here is a look at a Price/CD candlestick chart from today..... Images | ChartHub.com I have been following some of the other various charting services that are finally coming around to the Cumulative Delta parsed volume study, and it is great to see we have an expanding range of choices. After 6 years of trading with Cumulative Delta I am encouraged by all the recent charting service attention using the actual bid/ask traded order flow information (Ninjatrader, Sierra Charts, CQG, etc). MultiCharts looks like a great charting option too so it will be nice to have another option.

I trade exclusively with Cumulative Delta and I was going to make sure you want (upticks - downticks) OVER (bid - ask) such as this explanation....... Investor/RT Tour - Volume Breakdown (VB) BTW....today there was an excellent Cumulative Delta based "Inventory Grab" SHORT trade at 1034.50 ES level right after 1035.00 high was traded. This trade takes place after all previous resting SHORT inventory that had been holding for a period of time has been neutralized (they all covered to go flat). Right after the sellers bail that were holding large SHORT positions there is no one left for BUYERS to force into SHORT covering.....this leaves price hanging with new initiating BUYERS needed to step in to support current pricing levels. Here is what the Cumulative Delta looked like right after I had entered the trade as additional sell response was entering the order flow.... http://www.charthub.com/images/2009/08/24/FulcrumTrader__ES_SEP09

There is a pattern that I see frequently in the order flow when an imminent breakout/breakdown movement in price is about to take place at a key support or resistance level of resting inventory. Those holding the resting inventory, counter to the current trending movement of price, get active in the order flow to optimize a clean exit strategy. I would have to type out a long explanation for the details of what I am talking about, but then it may still seem confusing. Instead I just made a quick video to explain the repeating pattern in the order flow for a type of pullback breakout; TL! Videos This may help to see what goes on in various situations of pullbacks prior to breakouts in price.

I will note my review of current data feed for my Investor RT Pro charting. For those who also want to use any additional data feed in addition to a broker feed, I use DTN.IQ and it has been exceptionally reliable. The recent upgrades to the data feed infrastructure at DTN.IQ have been impressive to this point.....also, the bid/ask data for plotting Cumulative Delta bars has been rock solid at all times (and even during the recent FED announcement). DTN.IQ has really done a great job imo with their feed upgrades.....they have earned my long term business! :groove:

I am going to give a brief update on this Cumulative Delta news. Just to be clear, there is already an approved patent from the US patent office for TT and what they call the CVD indicator as you can see from the link I provided. The problem for TT with this action is the previous pending patent for Cumulative Delta on file with the US patent office from marketdelta.com (from documented work done PRIOR to Alvin Tanpoco's TT filing information). With Trading Technologies recent Depth Of Market patent legal fight history, the TT "patent grab" maneuver does make some tactical sense to me. I know how powerful the Cumulative Delta can be for tracking the accumulated zones of resting inventory initiated by commercials. TT knows the potential uses of this exceptional parsed volume study, and they want to attempt controlling interest over the Cumulative Delta use and availability going forward imo. I do not agree with the action TT has advanced with their patent filing, if they have some clear indications they where not the first to use Cumulative Delta in the public realm. I guess time will tell in the months ahead how any potential legal issues play out with the various companies who all provide solid Cumulative Delta tools. I will also note the obvious, I noticed TT did not file any patents for any MACD, RSI, or TTM Squeeze type indicators!

I am not surprised by this move at all. TT does understand the power behind the proper use of Cumulative Delta Volume. I just posted my comments about this news on my blog for our Delta based traders to see this important news....now I will watch how marketdelta.com/linnsoft.com/CQG.com respond to another technology grab by TT. Here is the news link...... http://www.patentstorm.us/patents/7565318/fulltext.html

I know this is being done, but do any of you here plug Zenfire feed into the TS charting app? My next big push in the months ahead will be setting up proper Cumulative Delta tools into the TS charting app for several interesting projects that I have to test (for live forward testing). TIA for any info!

I would not yet use TT Fix Adapter feed for any bid/ask work at this time (like Cumulative Delta computations, etc). Remember this is the feed they let their competition use....LOL! I have seen some recent runs of a days data with Zenfire, DTN.IQ, TT Premium Feed, TT Regular Unleaded Feed, and Transact Feed (into Sierra Charts) with some odd results for the TT Regular Unleaded Feed (....TT Fix Adapter Feed that is....). If you are going to run a feed to Ninjatrader charts using the "Gomi" Cumulative Delta study from their support forums or if you are going to run a feed to your own application I would stick with Zenfire or TT Premium feeds for now......hope this helps!

There is an excellent Cumulative Delta study from the Ninjatrader forums available at this time......Post# 320 to be exact; Delta Buy/Sell Volume - Page 3 - NinjaTrader Support Forum Many of us Delta based traders are hoping that Ninjatrader will offer historical lookback capabilities in the upcoming Ninjatrader 7 release.....we will see. In the mean time, I keep using Investor R/T for my Cumulative Delta tracking.