I recently am looking at the ER and notifced in comparison to the ES and NQ, at least for me it seems quite a bit more jumpy. I'm definitely no expert, and currently cant patterns in the ER or how to trade it. I currently look at 1 min charts and am a trendfollower, often entries in pullbacks, w/ occassional breakout trades. Am i looking at the ER from a wrong point of view or perspective. Was wondering which tools ER traders (ie would tick charts be better?, or what indicators help) use and what technique looks more suitable for this instrument (ie. pullbacks or breakouts, or reversals, etc.) Thanks for any advice.
I run a system that fades moves in the ER2 that doesn't work on the NQ or ES nearly as well. I've attributed that to the 'jumpy' nature of the ER2 versus the others. Basically I'm just saying I've seen the same thing you have. I also trade the S&P Mid Cap futures the same way I trade the ER2 with pretty good success.
trade the er2 as an individual market. the other day the NQ, ES, and YM were making new highs while the ER2 was sloshing around near mid-range. other times the ER2 is blowing up or blowing out and the other markets are kind of putting along. it may sound obvious, but just don't get trapped into thinking it will follow/lead/conform to other markets. take care omni BTW: fwiw, i use Market Profile and standard PSR calculations to trade the ER2. it is responsive, though it takes some study to get to know its tendencies and mannerisms.
Check it out this site to see if his system will make money for you: http://tradersparadise.blogspot.com/2005/09/first-bar-trade-did-it-againand-so-did.html .
I'm a price action only trader (no indicators) and I trade ER2 although not exclusively. Yet, most of my trades do occur in ER2. I trade pullbacks, breakouts, reversals as you do (most likely not the exact same specific method) and they are suitable for ER2. Maybe one day reversals are more suitable than the others while another trading day its the breakouts while another trading day its fading et cetera. I recommend you pay more attention to how ER2 price action reacts to a pending key economic report release and to its price action just after the release of a key economic report. In addition, pay more attention to how it trades when its volatility and/or volume drys up (knowing when not to open a new position). As for chart intervals, 2, 3, 5, 10, 15, 30, 60, 120min or daily...depending upon if its a day trade or swing trade. I've never tried tick charts on ER2 Next...I recommend you monitor some market breadth indices while trading ER2 especially ones that helps with the "feel" for ER2 volatility. Since your new to ER2 it will be a few months of fulltime watching/trading it before some pieces from the above that I mention begins gel together. Last of all, there are some seasonalities to ER2 where it moves a particular direction with high probability...useful for swing trading. Your going to need its past years of historical intraday data to discover such on your own. Other than that...its a great trading instrument and one of my favorites. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
=========== ArZoo; Would say your opinion is accurate ,as certainly as animals in zoo,ArZoo, have different personalities,moves. ER2 is more like a wild jumping deer, or kangaroo Follows trails also, have to pick your shot carefully with deer; some hunt deer for years without getting anything. ES is more orderly, & like a rabbit or turtle ; depending upon your traders personality. Moving averages help; years of observation help more.
Here is a chart of today's ER (basis 5 min candles) I notice price respecting several simple lines in the sand 1. DDF (Directional Day Finder from Dr. Clayburgh/Josh Lukeman) 2. R1 3. Previous consolidations (scan left on your own charts) Not a lot of opportunity for me today, but then there's always tomorrow. Good luck everyone Steve
Do you (or anyone) have any OHLC data you'd be kind enough to share? If not, where can I get some? My eSignal only has about 5.5 months back....