Relative trading

Discussion in 'Trading' started by peter77, Oct 14, 2002.

  1. peter77

    peter77

    I am a scalper and trend trader who uses another stock as an indicator for the one I am trading. For example if I am trading AMGN , I will mix the following Esignal symbols on one line, and use them an indicator. For AMGN it would be an even composite of $BTK, BGEN, and ND #F.

    If I was trading BRCM then I use a composite of $SOX, VRTS, and ND #F.

    To do this I use a custom EXCEL chart. I have two charts on my screen, the target, and the blend, and I trade based on the trend of the blend. I tried to combine them on one chart so I would have two lines, but that has proven to be beyond my ability, so I use the two charts.

    Anyone else use a similar system?
     
  2. nitro

    nitro

    Everyone who sector trades does some variation of this.

    nitro