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... but how many stops have been cleared? -17k CD div @ 945 growing steadily. Edit: PA/CD looks to me like a bear trap. D.

Longs layering 941.50 and higher... CD quite useful in timing equity buys (on dips). D.

I have 26k (dipped to 31k during the sell pulse) @ 944.25. I can't tell that 944.25 is the bottom of the zone with the chart type I'm using, could be +/- 2 tics. D.

Take you to that mansion in the sky? lol... now that explains the Falcon 7x :-) My beanie off to anyone who can make money shorting today. I just stuck to the good ol' small cap blinging ATS machine. D.

HOD pushed to 947.25 in order to clean the stops? man vs. machine at work... D.

On a tic by tic basis (delta ladder), I see more buyers than sellers so far. Possible targets for shorts (when the signal finally works) at 926, 923, 921. D.

Isn't this the same problem of trying to interpret a CD diversion? i.e. do hits on the bid represent aggressive sellers (selling at market) vs. patient buyers (buying at limit)? The only proof seems to be the price action that follows (or not). D.

+20k CD Div @ 937. There's buying frenzy on the "electronic tape". I'm guessing you're gearing up to "outzone" them frenzies... D.

I have it very close to even too. Have you ever looked into the discrepancy below? ========================== 05-03-09 03:06 PM Quote from rainman2: here you go... Thanks, Rainman. Are you sure about your numbers? I see CD divergence of about +30k (vs. +6k in my chart and...

I can send you an example by email. For one thing, I am not sure your method can be applied to what I'm trying to do, so I'll explain more in the email. D.

That hard stop must be coming handy when the black swans start flying around... tho according to normal distribution 6-sigma events don't happen more often than, say, once every 100,000 years. Gotta curtail the fat tail... D.

If you subscribe to the notion that "CD drives price" then price action would indeed lag CD action. I've seen cases where the opposite is true, i.e. CD is lagging behind price (aka hidden divergence), especially at tops/bottoms. I don't have a clear idea as to when one situation exists vs. the...

Interestingly enough, this is very close to what my setup is. I'm using range bars (I create them on my own using a custom program from a tick datafeed). By definition, a new bar in a range chart is started when the last tick breaks out of the (fixed) range of the previous bar. So now I'm at the...

What timeframe does the 9:17 slot represent? Is that cumulative since session open? D.

I just finished reading the thread from beginning to end. My interest is to use the statistical approach to optimize a specific setup for futures trading (ES). Do you have more info on the analysis stage using tick data? Cheers. D.

That explains it, thanks! btw would it make sense to project the price action next week from the change in inventory at the 895+ zone? For example, if the short zone inventory got thicker, would you expect next week to challenge the other end of the range (877.75-) rather than go back up...

Divergence at important level... let's see. +24k CD div at 895 -> price reacts with 5 pt plunge. Short inventory above 895 or? D.

"One cannot be betrayed if one has no people." (Usual Suspects)

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.

Very clear charts and explanations. A couple of questions: (1) How can you tell from the CD chart which buying pulse is the one that defines the top of the newly layered zone (reportedly at 881). (2) Do you measure the newly layered inventory directly from the CD differential in the buy...