Waterfall diagram is useful to find out how browser spending time loading page components. There is a an opensource tool built for IE called AOL Pagetest. It has online version where we can check sites via connections in USA and we can define connection speed.
I’ve prepared a sample page: http://examples.percona.com/waterfall1/, let’s look how we can optimize it.
Waterfall diagram of loading this page using IE7 (clickable):
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