Was recently shown this little gem of a ratio chart that will help gauge strength to certain markets such as the stocks and other financial instruments as the S&P, Dow Jones etc
So what does it all mean??
The ratio of two diametrically opposed asset classes often provides insightful clues about what investors are doing.
The XLY:XLP ratio is a perfect example....
Every forex instrument is a ratio. Usually the ratio is between two pairs.
In the video I show how one can pick out what's happening in one part of the ratio.
I explore the use of the Vervoot indicator for highly volatile instruments.