dax/eurostoxx relationship

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Quote from tradersaavy:

I have been studying the Stoxx 50, Dax, CAC40 and FTSE100 for two weeks now. I am going to start trading them very soon. Stoxx50 and Dax definately like imitating each other and the Bund for that matter as a contrarian. Also, I don't know if its just a snapshot in time (past two weeks of my observation) or if it's real, but the FTSE which runs very close with CAC40, seems to rule everyone: CAC40, Stoxx50 and Dax. And usually turns well before the Stoxx50 and DAx. Speaking from a 1m to 5m chart. Again, from 11/18 until today 11/29 this has been the observation. Hope it continues as it has produced some good trades (PAPER !!! )

Interesting observation!
I´d like to say I am going to try it too. Problem is that I don´t see any reason why the FTSE would lead the ESX, because the UK is more dependant on the eurozone than vice versa.

Are you sure you just don´t have a faster connection to LIFFE than to the other exchanges?

Well, I am gonna look into it..

Cheers

 

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Quote from Ditch:

it' s the same as with Nq and Es, sometimes they move similtanuously, sometimes they don't. In general I think the dax is more volatile. The thing that i dislike most about the ESTX 50 is that it has the habit of dropping and rising several points at once(gaps between the bars), so it can move past your stop without hitting it. somebody stated in this thread that the FTSE rules everything.... well, this guy is probably British and 100 years old

I noticed these gaps too. It´s very funny to see how obviously someone just hits the market buy-sell button for a too large quantity. Must be a trainee trader at Goldman or something ,-)

I am not bothered too much by it though. Sometimes I lose from it, sometimes it goes my way.