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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!

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  • $\begingroup$ which platform/programming language $\endgroup$
    – develarist
    Nov 6, 2020 at 5:38
  • $\begingroup$ Thinkorswim / Thinkscript $\endgroup$
    – rc76
    Nov 7, 2020 at 6:46
  • $\begingroup$ For a start support and resistance lines are a nonsense waste of time, get a proper quantitative finance education and save thousands if not millions of dollars wasted on chartistry nonsense. $\endgroup$ Nov 11, 2020 at 21:37

1 Answer 1

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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
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  • $\begingroup$ Hmm just tried it, it produced the exact same result as the simple division ratio :( $\endgroup$
    – rc76
    Nov 7, 2020 at 5:56

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