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Chartists can place an indicator behind the price plot of the underlying security by using the drop down menu for “position”. After selecting the indicator and parameters, choose “behind price” to place it the main chart window. Positioning an indicator behind the price plot makes it easy to compare indicator movements with price movements. Chartists can use the “advanced” options to change the color for better contrast.
In the chart below, we can see that RSI peaked in mid September, which was a few weeks ahead of the Dow’s peak. Both bottomed in mid November and moved higher until late January. RSI became overbought (above 70) in mid January and moved below 70 this week. Note that chartists can place any indicator behind the price plot of the underlying security. This includes MACD, On Balance Volume (OBV) and the Stochastic Oscillator.
Click this image for a live chart
