Trading the YM/Dow Jones

Readers of this journal will know that my trading account was wiped out by the collpase of PFG Best last week and I am now going to trade on my spread betting account with IG Index, which is covered by the the FSA in the UK.  So what happened with PFG should not occur with IG Index.

The spread on CL is 4 ticks, so I was looking for an instrument with a smaller spread which is also a good mover and satisfy my requirement of 40 ticks per day target.  The Euro/USD and the Dow Jones is only 2 ticks.  I like the way both of these move, but the DJI seems to move better and as it moves in line with the e-mini SP it fits more with the RPM/VPI indicators.  So I will be using the YM as a proxy to see volume and to find intraday S&D zones.

Here are some charts from Friday's YM and ES price action with comments.