I wish to map and display the Support/Resistance lines (i.e. SMA20_daily) of ES onto NQ graph as I think they are mutually effecting each other, how may I achieve this? Do I need to do some kind of normalization?
For example, I have a SMA20_daily of ES, is there anyway I can ‘map’ this support/resistance line to the NQ chart, so that I can see the SMA20_daily_ES on my NQ chart, therefore plan an entry/exit of NQ? (i.e. If I believe when ES touches this line, it will reverse, than I can plan to do reversal strategy on NQ, as NQ is the symbol I wish to trade)
I have tried using simple ratio method, but it didn’t produce the correct mapping. 🙁
Price of SMA20_daily_ES on NQ Chart = (Price_NQ/Price_ES)*(SMA20_daily_ES)
Any advices will be awesome.
Thank you guys!
Maybe take the log ratio?
log( Price_ES / SMA_ES ) == log( Price_NQ / ES_equiv_SMA_NQ )
simplify and set
log( Price_ES / SMA_ES ) = X
where X is just a known constant, and then substitute and rearrange
ES_equiv_SMA_NQ = Price_NQ / e^X
Answered by babelproofreader on February 4, 2021
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