Hi PumbaPLS,PumbaPLS wrote: Fri Jun 24, 2022 7:36 pm Indices are comprised of many different stocks/companies.
US30 -> comprised of 30
SP500 -> comprised of 500
etc.
So generally you find.. when most Stocks go up the indices are also going up.
As all those indices are somewhat entangled with each other due to the comprised stocks, so you see them move often in tandem.
They can at times move differently though, as for example the NAS (US100) has more Tech Stocks included.
When trading indices you often want to use more than 1 indice to confirm a direction.
Example:
Lets say US 30 is going up, but NAS is going down.
You should then better wait till both US30 and NAS agree with each other to one direction before trading.
Beatle is using 8 indices... which I personally think to be overkill. As previously said very often those indices move very similar.
For most Traders I would suggest using 3 indices for their trading. This is usually more than enough.
The indices I would recommend are the "3 Amigos"
US100 - US30 - US500 As they generally have the most traded Volume and are rather volatile.
I personally Included DE40 in my list.
I hope this helps.
I include my trading setup for reference how I am scalping indices every day.
Would you share the template and the indicators? It looks pretty nice for the eye. Thanks.