Anyone use these possible indicators (and others) in trading the e-minis and how do you use them? The first four are more like sentiment readings as well as overbought/oversold areas. But does anyone try and play the spread between the spoos and cash fair value?
How ironic. I was just asking someone on this board whether they use Tick. I hope some of you guys can give good examples of how these indicators are valid daytrading tools.
I've played around with the tick and ES a little bit. I've backtested the following with decent results: a. on the TICK 5 minute chart. Low of -600 or lower 3 bars in a row. b. Buy 1 tick below a 10 bar low c. close out the position if tick > 300 or market hits a 10 bar high I traded this for about a week with decent results (9 out of 10 successful trades) but it required too much attention to the quote screen and once I took into account commissions and slippage on the backtest the expected value wasn't as much as I would like it to be.
can someone please explain what the $PREM indicator/statistic represents and how people read/play it? Also, what's the difference between the $PREM and $EPREM? Thanks
I believe $EPREM corresponds to the premium on the E-mini and $PREM is for its big brother. I don't have a complete understanding of index arbitrage either and would appreciate anyone elucidating this subject. But from my incomplete understanding, arbs will step in to buy/sell the futures/stocks when the futures get out of line with the underlying cash. Now, the actual mechanics and trigger system for entry/exit is where I'm a little fuzzy.
I use 1 min $tick to indicate short term turning points in the ES. $tick is a leading indicator giving a 1-2 minute warning of an impending change of direction, however this change in direction is only short term. You have to be careful because when the $tick has a turn around; a trade in the ES might only be good for 1pt or it may go against you for 10pts. If having a high risk to reward ratio is important to you, then its not for you.:eek:
I've noticed that when two 5 minute bar TICKs in a row print above 1000 when the market is in somewhat of a trading range or approaching a previous high, a reversal is highly likely. TICK and TRIN are also decent as divergance tools. ie.. the market is making new lows but the TRIN is making a lower high ( the sell off is running out of steam...be wary of shorting).
Is anyone able to compute and chart breadth indicators specific to indexes? (i.e. SP500/Naz100) Might be interesting to be able to use TICK, TRIN, A/D, UPVOL/DNVOL to ES/NQ?