Ratio charts allow chartists to compare the performance of one security against another. The chart below plots the ratio of the Nasdaq and the NY Composite. The Nasdaq is underperforming because this ratio ($COMPQ:$NYA) has been falling since June.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. 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 market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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