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malvado,
How strong is the relationship between S&P and DAX? And also DAX's relationship to opening of the US markets? Does DAX trade overnight as well? Thanks. |
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Hi torero,
It really depends on the trading day and what's occurring via key economic reports, key market events and geopolitical events.
Simply, some days the S&P reacts to the
DAX and other days the
DAX reacts to the S&P.
You can see the evidence of the S&P following the
DAX in the ES Emini overnight data on those trading days you see strong price spikes in the ES in the overnight trading session.
When you see that, more often than not its related to something occurring in Europe or elsewhere in the world.
In the past when I was trading the ES,
DAX and the CAC40...if one gave me a pattern signal and if I didn't feel like trading the trading instrument with the pattern signal...
I would take the trade in another trading instrument via the pattern signal in the other (sister trading).
Example, bullish price action in the
DAX and I would take the trade in ES or vice versa.
Thus, the correlation is good enough for sister trading on many trading days.
Mark
(a.k.a.
NihabaAshi) Japanese Candlestick term
"Volatility Analysis is a doorway to consistent profits."