Leading indicator for trading E-mini contracts

Discussion in 'Index Futures' started by allesim, Jan 9, 2002.

  1. allesim


    I believe many day-traders use S&P contracts, Nasdaq100 contracts, E-mini S&P (SPH2) and E-mini Nasdaq 100 (NQH2) contracts as leading indicators for stock trading.

    But when it comes to trade E-minis themselves, can somebody suggests some valid leading indicators for trading them?

    I am used to believe that market Depth is important for day-trading E-minis. But esignal does not provide it.
    IB quote window also seems not to provide Level2/market depth.
    Can you recommend some alternative charting tool?

    Any suggestions on how to best use Times&Sales (esignal does provide it) for day-trading E-minis?
    I found that deciding entry and exit timing on bid-ask-size is often misleading: if repeatedly bid-ask-size is, say 10x90 5x60 it does not necessarily lead to an immediate downturn in NQH2 price!

    So watching T&S for ESH2 and NQH2 produced many head fakes.

    Thanks and waiting for suggestions
  2. Short answer, the SOX index.

    From my experience (using Realtick) I'd say that if there is a leading indicator(s) of the Nasdaq 100 futures it would be the SOX index and the Nasdaq tick. However the lead is sometimes significant for the Nasdaq tick (minutes). The trend and relative position (from its high or low for the day) of the Nasdaq tick (and trin) is more important than its actual reading.

    Most of my charts have no indicators and chart two items so I can evaluate their relative behavior, e.g. Nasdaq100 e-mini with the SOX index on one chart, with the Nasdaq tick on another chart, with the S&P500 futures (e-mini) on another chart and the Nasdaq tick and Nasdaq trin together on another chart. There are other charts on my page as well.

    Most times I find market depth more of a distraction than of any value. Large bids get smacked and offers eaten.
  3. m_c_a98


    If I'm using my discretion and not waiting for a signal when trading NQ e-minis(which is quite often) I only look at three charts:
    -3min bar chart with 20pd simple moving average and all support and resistance lines drawn from the trade prospector software.
    -5min candlestick chart with a customized parabolic SAR indicator
    -30 tick chart, no indicators
    I don't look at any indices or stocks.

    I have no idea how looking at the depth of market can help me at all, I don't look at that or time and sales either, too much noise for me. NQ will jump around 2points in 20 seconds. If I'm staring at the each tick I find it impossible for me usually get anymore than 2-3 points on NQ. Its just too tempting to take a quick profit. Today NQ tanked over 40 points in 15 minutes and I only got about 7 because I was watching every tick when I should have been managing the trade on the 5min chart and adjusting a stop order as the trade moved in my favor.
  4. js1257


    m c a98 what charting package are you using?
  5. m_c_a98


    I'm using tradestation2000i fed with qfeed(through metaserver)
  6. allesim


    Hi base-hit

    what is the esignnal symbol for $SOX (the Nasdaq seminconducorts index) ?

    And for Nasdaq tick? Are you meaning the NQ H2 tick chart? or 1 min chart for NQ H2?

  7. allesim


    Hi mc-a-98

    re: 20pd simple MA
    what is pd?

    re: 30tick chart
    are you using esignal? how to select 30 tick?

    re: will you be so kind to send an attachement to me with your setup snapshot for NQH2 or ESH2?
    (open esignal layout, or rt3 layour > press Prnt Scrn on your keyboard > open MSword > press ctrl V > save as lay.doc > email to me as attachment)

    My email: allesim@yahoo.com

    thanks in advance
  8. allesim,

    >what is pd?

    >are you using esignal? how to select 30 tick?
    mc-a-98 already said he's using tradestation2000i fed with qfeed(through metaserver). www.DynastoreLight.com works well too.
    TS2000i is directly compatible with eSignal. If you are interested only in the US markets, you 'may' 'try' TradeStation 6 instead. Somebody, or quite a lot of bodies, are delighted in callind TS as BS. No comment. TS, let's forget its price, as a charting tool is excelent. As a 'backtesting' and performance tracking tool, is .... Data maintenance is a headache, but solutions/workarounds exist. Abundance of 3rd party add-ons are there. ...a long story...

    >press Prnt Scrn on your keyboard > open MSword > press ctrl save as lay.doc > email to me as attachment)

    Why not try screen capture tools?
    IrfanView32 is very good. Less than 1MB. And completely FREE.
    And save as GIF file.
  9. allesim,

    I don't use esignal so I can't help you with their symbols. The SOX is not Nasdaq specific and includes several NYSE listed companies (AMD, TXN, MU come to mind).

    As for the Nasdaq tick I mean the tick measurement (upticking vs downticking stocks) not a tick chart. Realtick gives you NYSE tick (tick-n) and Nasdaq tick (tick-q). I'm sure eSignal gives you both also.

    None of my charts are set to shorter than 2 minutes. With Realtick I have the value of whatever is being charted updated tick by tick on the scale on the side of the chart but the chart itself only resolves to the 2 minute level. Cuts noise a bit.
  10. 2-B


    Actually it does have that, just right click on the contract and select market depth.

    It's $SOX. Just like you had it. Here's the link to Esignal's symbol guide:


    $TICKQ, note however that Esignal only updates this symbol every 30 seconds per the support page, so if scalping based only on this becareful. I trade the ES mainly, so I never follow that one myself. I do follow the NYSE TICK though. Its symbol is $TICK, which updates every 6 secs.

    I don't use TICK readings for entering orders though. However, I will use it sometimes for exiting orders. Say I'm long the ES, and then I see the $TICK move from 500 to 1000+ in just a couple of readings. However the ES doesn't follow thru and actually starts dropping a little on that TICK move. Well to me I would read that as a divergence and would probably exit, as we could be at a turning point.

    Hope that helps,

    #10     Jan 10, 2002