Mapping Support and Resistance Across Related Futures

Summary

The document considers how to display an S&P 500 futures moving average as a comparable reference level on a Nasdaq futures chart. A direct price-ratio adjustment is proposed by the questioner but is reported not to work as intended. The answer instead relates the logarithmic distance of each instrument’s price from its own reference level. Holding that relative distance constant gives an equivalent level for the second instrument, expressed in terms of its current price and the first instrument’s price-to-average relationship.

This is an algebraic way to scale a level across instruments, rather than evidence that support or resistance in one contract predicts a reversal in another. The mapping depends on the chosen relative-price relationship and current prices; it does not establish that the contracts move together reliably or account for changing correlations, contract specifications, or market regimes. A trader would need to evaluate those assumptions before using the mapped level for entries or exits.

Key ideas

• A log-price ratio can represent an instrument’s relative distance from its moving average.
• Preserving that relative distance yields a mapped reference level for another instrument.
• A simple raw price-ratio adjustment may not produce the desired chart level.
• The mapping does not demonstrate that one contract’s support or resistance predicts the other’s reversal.

Tags

# Mapping One symbol's Support/Resistance to another Symbol


# Mapping One symbol's Support/Resistance to another Symbol












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!

## Answer by babelproofreader (score 1)

https://quant.stackexchange.com/a/59172

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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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.