Today was a contradiction to your theory. I watch the ES and YM when trading the ER. The ER has been leading the ES for much of the past year. Today, percentage-wise it lagged all the other indices but buying the low at about 719 and you would have had a strong trending run to 726. There was little downturn during the move.
My comments were far from a theory. My point is watching ER2-ES spread is very useful for intraday movement.
As an active trader it is still important for me to pay attention to the weakness of ER2. For example if I attempt to buy "highs" of a range and I am wrong and ES goes offered ER2 bids will vanish and I will be looking at a 5-10 tick loser.
for the price Signal I am using a crossover of 50and 60 EMA And I am using ECO and MA at he bottom. Ideally I want everything one way or the other.
You are correct, however not completely. There are numerous opportunities from the ERâs spread versus ES, or even YM. I have found in premarket if ER is the weaker link, and you get positive news for European markets like DAX, or Euro Stoxx, and or buy signals (US markets too ES, YM) then ER is the one to buy. I have profited from his strategy on numerous occasions. I would be missing maybe 30% of my trades if I did not watch the spread, and possibly even get on the wrong side.
yes arrows Ergodic = (Average (Average (Net, parameter 1), parameter 2) / (Average (Average (Abs(Net), parameter 1), parameter 2) ECO - R Krauz The Robert Krauz article I read described the ECO as "a double smoothed ratio of the difference between the close(C) and open(O) of each bar, and the difference between the high(H) and low(L) prices for each bar" originally created by William Blau. FWI my interpretation is: {ECO[Ergodic Candlestick Oscillator]} (MOV(MOV(C-O,5,E))26,E)/MOV(MOV(H-L,5,E))26,E))*100