DJIA vs DIA candle chart different
- Thread starter NoEmotions
- Start date
The DJIA is an artificial construct and not tradeable. The DJIA relects the last traded price of the 30 component stocks. The last trade could have been at or on either side of the component's current bids and offers. If you buy the 30 component socks you will be buying at or near the current offers. If you sell the 30 component socks you will be selling at or near the current bids. Either buying or selling all 30 component stocks you will be away from the last DJIA quoted number.
The DIA and YM futures are the trading vehicles for the DJIA. Index arbitrage keeps both of them in line with the DJIA during regular stock trading hours. Any differences between DIA/YM and the DJIA are due to noise created by the trading reality of very short term buy/sell demand pressures.
Of course I noticed that you were talking about DIA.
I politely pointed out that you provided incorrect information and yet you insist on being ignorant.
In order to match the DJIA the DIA is also price weighted.
Just look at the "Fund Top Holdings":
https://www.spdrs.com/product/fund.seam?ticker=dia
6,667,290 shares of each component stock.
A comment on RSP, yes is equal weighted vs SPY but check the management fee of RSP (.40%) vs SPY (.09%, the lowest in the business).
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No Emotions;
You may not believe this but DIA is much more accurate,
it includes '' Emotions''. DJIA includes ''No emotions''/no comissions'/no slippage.................................' As if anyone can trade with no emotions/no slippage/no comissions
Paul Tudor Jones did something like that;
but not really applicable to your question/volume/situation.
Many of the DOW S&P indexes ;
dont even have volume, that maybe a clue also
And as a helpful hint technical analysis is defined as study of price AND volume.................................................................................thx all fpr replay...
For daytrading...
The reason I like DJIA candlestick chart is because of less noise....
I thought if I can reproduce price candlesticks of DJIA with some instruments then I can take advantage of less noise to apply even tighter stop losses.
With DIA, e-mini dow etc.. noise is a very vital component which forces me to put little larger stops.
For daytrading...
The reason I like DJIA candlestick chart is because of less noise....
I thought if I can reproduce price candlesticks of DJIA with some instruments then I can take advantage of less noise to apply even tighter stop losses.
With DIA, e-mini dow etc.. noise is a very vital component which forces me to put little larger stops.
