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Simplicity is the ultimate sophistication... said da Vinci.

I'm reading from the Sept chart about -4k CDV (59k to 55k) between the two highs. On the June chart, the CDV seems to be much lower (about -1k). Is that what you'd expect? Do you add the CDV up for a total of -5k in this case?

On the contrary, this thread is an excellent place to learn the intricacies of delta use and I'm grateful that AMT is willing to share from the vast practical knowledge he gathered through hands-on experience. If you really follow the thread carefully (as well as the thread that preceded it)...

When someone asks a simple question, she deserves a simple answer, which is what you gave :-) I'd like to offer another perspective. The simple patterns utilizing the information contained in CD will get (and are likely already in the process of) destructed or arbitraged away, i.e. if you...

Sorry for late posting, was busy coding all day... CDV @ 927 = +31k from 6/3 pm, CDV @ 929 = +26k from 6/4 am.

Christie just called and said she needs a private tutoring session on delta matters. I replied "of course" without thinking twice and now freaking out because she may be asking questions I have no good answers to. I hope you don't mind if I ask more questions later to make sure Christie's...

Thanks for the thorough explanation. Even Christie can understand it all now.

Quoted from the previous thread: "Price will NOT trade through that zone of SHORT positions held (area of "NET" SHORT HOLDERS) from the last time price had traded in that area, until those net short holders go neutral." A few of questions on the above: (1) Wasn't the run up to 957.50...

"Through unknown mechanisms, he yet again lost much of his trading capital, accumulated through 1929. Thus, on March 7, 1934, the bankrupt Livermore was automatically suspended as a member of the Chicago Board of Trade. It was never disclosed to anyone what happened to the great fortune he had...

Your point is clear and sticking to the trading plan is what the doc ordered, however, I believe I've seen AMT cover on retraces before, just wondering his logic in this specific case. Waiting for the master to answer now...

First target on 947 entries is 942 (5 pts), right? I don't see what can be gained from holding 942 thru 947, since you know that area is where the action is likely to start from. Why not collect your 5 pts in the AH at 942 and use the extra liquidity to re-establish a bigger short at 947 if you...

Using the method you've illustrated before, The first two sell pulses off the HOD are 957.50->955 and 955->953.25 creating a zone of roughly 4 pts. The CD differential (total for both pulses) is 10k contracts. Did I get that right?

Assuming no new information was gained until just prior to the news, why wait for price to ascend to 947 during the AH instead of exiting at the low 940's?

http://en.wikipedia.org/wiki/Correlation_does_not_imply_causation D.

I'm guessing that CDV signals worked flawlessly on their own merit in the early days of delta use, but the simple patterns quickly self-destructed as ubiquitous use picked up. IMHO, if not backed up by CONTEXT and MAGNITUDE, those signals can be used by program trading to "fake" and extract...

VWAP touch at 933 and CD div -5k, seen this setup repeat frequently, a perfect R10 too if you dig those round numbers administered by scary bespectacled men... D.

CDV won the battle, long deltas now largely decimated in 924-927 zone. Increasing longs on delta ladder, all the way down to 911.50. CDV -11k @ 923.50 (just above 920.50-923 zone) calls for further downside. D.

924-927 long zone. Let's see what CDV looks like on a retest. Edit: PA mini IHS @ 929.25 while CD making LH/LL, who's going to win? D.

Actually, per my earlier post in the thread, using CD dips to place buy orders for an equity ATS. Works like a charm. For ES, the statistical edge from CD-based entries is barely profitable, still work in progress. D.

If you don't get the CD divergence you want at a specific price/time, just choose another price/time, it's going to give you what you want sooner or later. My dad used to say - you can always run a straight line through any 3 points... if the line is thick enough :-) Ok, I'm just kidding, it...