In this video we go over the correlations that I often see between the cache markets and the futures market. Here we are using the NDX and the NQ in a premarket analysis but this is something that I do throughout the day.

Of course these markets are connected that’s not the correlation the challenge comes down to the fact that the ndx has certain reaction areas that we would like to capture when trading the futures market but understanding where those reaction areas are in conjunction to the futures market itself.

It’s the Reactions

That’s what we’re trying to capture we’re trying to capture the areas of the chart that correlate to these two markets in the reactions. For those that watch my streams you see me say something like, “the NDX is at its own weekly open or that the NDX is at the certain reaction area.”

Now the positive here is that mostly these reaction areas on the cash market chart correlate to a reaction area on the futures chart. The frustrating thing is that they’re not the same reaction indicators or reaction rules. On the weekly open example I would give more precedents if the NDX is hitting the weekly open and trading that accordingly then if the futures NQ was hitting the fast or slow momentum indicator.

In the video above I share my process on identifying some of these and then correlating it to where it is on the futures chart but I am looking for a solution that is easy and transferable maybe something we could put into an indicator O if you have any ideas definitely share in discord or send me an email