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I would say absolutely. In my experience, and from words of wisdom handed down to me from others who know way more than I do, it's almost always best to chart the full sized contract and trade the micro based on it.
That said, what @SunTrader says rings true... best to see it for yourself.
I've seen many answers to this question, and this may be the best.
There is in fact not much difference, and if there were, why would you want to enter trades based on the one you were not trading? Which one do you think they are going to be executed on?
But as a practical matter, I doubt that it matters. Conceivably, the mini, which will have more volume and more participants, might show you more if you are using a volume-based trading method or something using order flow, simply because the greater amount of data might make it more reliable.
But still, you are trading just one. Why be watching/deciding/reading-order-flow/reading-price-action/reading-anything for the one you will not make a trade in? Seems complicated to me....
I know that others may disagree, but I'll keep things simple where I can. But the reality probably is that you can do just as well either way.
Bob.
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Edit: in very inactive periods, such as overnight, the micro might become more erratic. So perhaps then you should be watching the more active one more. During regular hours, probably not.
When one door closes, another opens.
-- Cervantes, Don Quixote
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
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I know you guys are talking about ES/MES and not BTC/MBT but I think this is interesting in relationship to this conversation. This is the Sunday 4th opening of BTC. MBT experienced $1500 (4.2%!!!) in slippage!
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
Thanks Given: 4,399
Thanks Received: 10,225
This was Algo's/HFT Market Makers taking GTC limit orders. While not impossible, very difficult for a non fully automated trader to take advantage of this.