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How can I Create an Inverse Chart?

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StockCharts.com users can invert a price series by using the symbol “$ONE”. Simply create a ratio chart using $ONE as the numerator and the other symbol as the denominator. The chart below shows $ONE:$VIX in the main window and the normal $VIX in the lower window. Inverted $VIX can be handy because the normal $VIX is inversely correlated with the stock market. In other words, $VIX moves up when the stock market moves down. This relation changes to a positive correlation when using inverted $VIX ($ONE:$VIX). 

130510vixone
Click this image for a live chart
Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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This is a fantastic feature. Thank you so much for this gem. It is something I have wanted but it did not even dawn on me to ask. Much appreciated

Posted by: Terry Flynn May 10, 2013 at 17:14 PM

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