RangeTraders bear trappin guide!

Discussion in 'Trading' started by RangeTrader, Jul 14, 2012.

  1. I lately stopped charting the ES because it's a derivative of the SPX. Correlation alogo's keep them synced pretty well. The SPX movements are much more flowing and give you a proper feel for the market too.

    It's bad practice to chart a derivative... You chart the main instrument itself.

    You don't chart calls/puts, you chart the stock. You don't chart the SPY, you chart the SPX... So why the hell was I charting the ES if it's just a derivative of the SPX? No reason to... Just prices are needed for things that are derived from something else like futures and options.

    And yes, in pre-reply to some of the fu*kfaces out there... I know a lot of the commodities futures are not derived from anything other than the commodities themselves which you cannot chart... However, the FX futures are derived from something else like the indices.

    The FX futures are actually quite useful in that there is probably a lot of good information that can be gotten from their volume... Currencies have no volume data... So, I would recommend charting the FX futures or pulling the volume data and overlaying it onto your EUR/USD etc charts...
     
    #11     Jul 15, 2012