some were mentioned here http://www.elitetrader.com/vb/showthread.php?s=&threadid=132688&perpage=6&pagenumber=2
eggs, scrambled eggs, egg salad, boiled eggs. sunny side up. I can connect them all very logically, but they mean nothing to my bottom line. Why? Because they are not relevant. There are a million theories that make some sense but will not work. I am sorry, but I am one of those guys that think you are full of it, unless you show me net real time $. There are a few folks here that would have been better off pursing a career in fictional writing rather than becoming charlatans and liars. Nothing is new here for decades. Just charlatans trying to reinvent things for their benefit.
The EDGE of cumulative delta volume becomes real when you use it in conjunction with the Jack Hershey Method. If you don't know the basics of the method, then CDV becomes just another indicator on a chart. The #1 rule of the Jack Hershey Method is that Volume leads Price - ALWAYS. How do you define that rule? Seriously, have you ever just thought about what that means? So many traders on this site have gone so far as to disregard volume completely because they couldn't understand how volume and price relate to one another. I define it as "volume cycles complete before price cycles complete." By defining it that way, I believe volume lets me know that change is coming before price lets me know. By knowing beforehand that price is getting ready to reverse, I can then use a different tool set to carve the turn. I annotated a chart that will hopefully help.
I see that at around 15:40 there was a positive divergence indicating further upside movement, but price collapsed. That is the problem with a well chosen chart.
DB Please post some charts of your real time trades which might further enlighten us. Actually I do mean it. I am am always open to improvement.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3357414> I am not sure the above is what you wanted me to do. I have already drilled into bar mutation of cases with the use of leaning PRV tool as well as other fine tools. So at Sub level, I may not be very good at identification of ftt but staying on the right side isn't too much of an issue for me in general. I just need to reason through why I should compound profits.
I backtested the rocket on K200 and ES. The rocket criteria are: 1. Long when macd(5,13,6) histogram >= 0.4 and stoc(14,1,3) K > 80 and stoc(14,1,3) D > 80 2. Short when macd(5,13,6) histogram <= -0.4 and stoc(14,1,3) K <20 and stoc(14,1,3) D < 20 3. Close long when stoc(14,1,3) K < 80 4. Close short when stoc(14,1,3) K > 20 I applied MACD and Stoc to both degapped and non-degapped data. I found there were very few rockets in K200, compared to ES. The summary of the rocket bactesting is attached here. I currently focus on handling market sync and volume.