looking to plot ES price levels to be converted to SPX levels based Closing Price

[tosalerts6247]

Hi,

I already have a code from thinkscript that creates a label for showing the difference between ES & SPX. Code below. This label works on both on my ES & SPX chart.

def ESclose = close("/ES");
def SPXclose = close("SPX");

def diff = ESclose - SPXclose;

addLabel(1,"SPX: "+SPXclose+" ES: "+ESclose +" ES-SPX: "+diff,color.white);

It uses a simple logic of doing the difference between ES & SPX closing prices.

Now if I am looking to plot ES key price levels as input to the indicator but can we apply the same logic wherein the ES price levels will be converted and plotted on SPX chart. I am looking to have the ES levels converted and plotted on my SPX chart.

Kindly please let me know if TOS supports such a functionality .

Thanks in advance

 

[scott69]

I think it is possible that you don't understand the relationship with a futures product and its underlying asset. The ES is the futures trading vehicle of the SPX - S&P 500 index. They stay in a fundamental lock step with each other because of the way that they are designed by the CME. Market makers and designated financial institutions guarantee that the futures prices will move "extremely" close to the underlying in order to maintain an orderly futures market. i.e. the futures value cannot deviate from the underlying. So, you cannot have a 1% up move in the futures and have a 1% down move in the underlying. Arbitrageurs and market makers will prevent that from happening. In addition, to answer your question, the futures value is the highest amount away from the underlying at contract change, and that spread is slowly reduced to almost zero at expiration. If you plot the difference between the two, it will look like a line that starts high, and goes down to zero. This happens during every contract, so that plotting the difference between the two will get no actionable results. And because they move virtually in lock step, monitoring the difference between the two in real time will also have no actionable results, as they are designed to move together. I hope this helps.