One reason for the perceived increase in noise in the ES contract could be arbs fading every small entry that scalpers make on 1-minute charts. They get the arb between the emini and the pit and they get a little more as the small moves get beaten back. Without a wide spread this kind of computerized very short-term fading may not work. Perhaps it is the NYSE envelop strategy - only on the emini. I'm just guessing here. If true, it could account for an increase in very short term directionless noise.
That's exactly it. Could the e-mini NQ or ES be traded on a 10 min. chart alone? What time-frame do you trade?
Exactly, that's about all one can say about it. No one studied it in any objective way, so it depends, on your setups, your targets, your system, your mood, and who knows what else. And on the day too...
I take my ES entries from the 5, 15, 20, or 30 minute charts; whichever ones show the best setups. However, I will often only work off my 15 minute charts for an entire day. Not as many trades but also not as many whipsaws.
ES tends to trend better when there is liquidity. NQ is less wild during lunch hour. When TRIN is at extreme - both go wild Actually, the price distribution of ES over shorter time frame is more stable than NQ, thus NQ can run a move better (trend) on less than desirable volume.
IMO, they must be played.. in CONCERT,,, with one another. do not attempt to trade .. either.. in mutual exclusion.. or you'll be in for a world of hurt! and a rude disappointment. :-/