His question here is currently being attempted to be solved by IIT Bombay - the same gang who tried calculating the corona virus wavelengths. Mixed results thus far
Hey, more power to you. Why not kick it around with somebody who works that beat? Invesco has some experience with it, maybe you and their guy can do lunch. They have presence all over the place. Welcome to Invesco Please confirm your role to access this content At Invesco, our clients are at the heart of everything we do, so we want to make sure you have access to the type of content that’s useful to you. https://www.invesco.com/us/en/country-splash.html?src=/us/en/financial-professional/contact-us.html 1. Tell us who you are Individual Investor Financial Professional Institutional
Draw a chart of the two products you speak of. One pair where it works as you say and one pair of the same two products where it doesn't work on 5minute charts. Some stats guru analysis would be a hella better but for a quick and dirty example of what you are talking about, it would be fun to look at. Here is a daily pair from SP500 and a 5m pair. ABMD not a major component, it rhymes but nothing special. Your's prob looks much more correlated. Post em up!
In case there's not a stats guru handy, here's a pair of 5minute charts with pivots and moving averages.
Wouldn't that be pretty standard arbitrage (and manipulation), syncing of price movement over time. It's everywhere. Some track more than others at certain times and are going to rotate in and out of tight or less tight tracking, but seems pretty common play between both.
Can you upload some data so one could take a look at how it trades and compare with indexes here? If I could see a year or two of 1-minute data that would suffice for short and long term analysis, and I might be able to tell if certain footprints in how the indexes trade here compare with the footprints of the indexes there.
Everything eventually moves (price changes) from adequate supply and demand. Since index constituents move the index itself your observation may be true on a summarized time-frame at times but it can't be generalized. When index is going up, the leading stock in the index can really be going down on a specific news. It is not right to assume support on a index equates to support on underlyings.