If you were watching both charts today, you saw that the exact area the rally stopped on the ES was the Fibonacci extension (FE) of the previous day's low to high. Even if you were only trading the NQ, had you been watching both charts you could have:
1.) Taken profits from a substantial rally if you were long.
2.) Gone short for an opportunity that yielded more than 50 points (a nice addition to the long profits from the morning).
I don't have time to post detailed analysis on my trades today, but here are the charts* so you can see the synergies/interaction between the ES and NQ (with respect to what I pointed out above).
It is just another piece of the puzzle.
ES:
NQ:
*note - charts are shown with 15-minutes left in the trading session.
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3 comments:
If you are long a stock, will you take profit if ES or NQ signals reversal but your stock does not?
Thanks~
X, thanks for this. While I knew there was interaction I never really looked at it. I spent an hour looking over charts this morning, and I was amazed. Thanks for sharing.
tl-
I don't really pay attention to ES/NQ when I am trading stocks. I am not saying it is right or wrong, I just don't do it.
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