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Knowledge Base

Relative Index Comparison (RIC)

Overview


The Relative Index Comparison (RIC) is in essence, a division spread between the chart symbol and a selected index (or other security) to show the relative strength over a user-defined time period.

[See also Relative Strength Charts.]

When the RIC is sloping up the security is relatively stronger than the index, and weaker when sloping down. Click here to read more on relative strength.

Here's an example showing CBA with the ASX200 (XJO) as the RIC index. The user-defined start date has been set to Year To Date and zero-based, so CBA has under-performed the index by 7% this year. However, because the red trendline is sloping up it has been relatively out-performing the index since April after a weak start to the year.

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To add a Relative Index Comparison tool to your chart, select the tool from the Price tool group, and left-click on the chart. Optuma will then draw the Relative Index Comparison tool using the default line chart settings, although it is possible to display in either bars or candles.

Actions & Properties


Actions


Copy Data to Clipboard: Will copy the tool's values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.

Reset Normalisation Date: Click here to reset the start date to the first bar displayed on the screen.

Add to Toolbar: Click this action to add the selected Relative Index Comparison tool to your custom toolbar.

Apply Settings to All: When multiple RIC tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as changing normalisation dates - as this allows all the other RIC tools in the chart, page or entire workbook to be updated instantly.

Copy Tool: Allows you to copy the selected RIC tool, which can then be pasted onto a different chart window.

Move to Back: If the lines of the tool are displaying in front of other tools or indicators clicking this action will move the lines view to the background.

Move to Front: If the lines of the tool are displaying behind other tools or indicators on the chart, clicking this action will bring the lines to the forefront.

Restore Default Settings: Click this action if you have adjusted the default settings of the RIC tool, and wish to return to the standard properties originally installed with Optuma.

Save Settings as Default: If you have adjusted any of the RIC Properties (colour for example) you can save the adjustments as your new default setting. Each time you apply a new RIC to a chart, the tool will display using the new settings.

Delete: Delete the RIC from the chart.


Properties


Tool Name: Allows you to adjust the name of the tool, as it's displayed in the Structure Panel.

Normalisation: By default, the RIC is calculated using the first data point as the 100 level. Click this option to use an alternative start date, or to choose the left edge of the screen (when you change the chart history on the screen the tool will automatically recalculate using the first bar on the screen as the 100 level).

Zero-Based: When selected the RIC line starts at zero, rather than the default setting of 100.

Comparison Index: Displays the index code being used as the Relative Index Comparison. To change the index being used, left click the action and enter the required code.

RIC Currency: Sets the currency to be used for the RIC.

Index Currency: Sets the currency to be used for the Index.

Plot Style: This option expands to display the following:
  • Plot Style - Allows you to change how the tool is displayed on your chart. There are 8 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step, Bars, and Candles.
  • Line Style - The Line Style property allows you to adjust the type of the line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
  • Line Width - Allows you to adjust the width of the line. Moving the slider bar to the right increases the thickness of the line.
  • Line Colour - Allows you to select the colour of the line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
  • Fill Up / Down Barrier - When the Plot Style is set to Shaded you are able to adjust the barrier value, the default value is 0.00.
  • Fill Up Colour - When the Plot Style is set to Shaded you are then able to alter the Fill Colour for the tool.
  • Fill Down Colour - When the Plot Style is set to Shaded you are then able to alter the Fill Colour for the tool.
  • Transparency - When the Plot Style is set to Shaded you are then able to use this slider bar to adjust the shading transparency.
  • Visible - Un-tick this checkbox to hide the plot from the chart.

Start Level: Allows the starting RIC value to be changed from 100.

Start Level Style: Change the horizontal line's style, width, colour and transparency.

Offset: This provides the option to offset the Relative Index Comparison from the chart.

Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.

Visible: Un-tick this checkbox to hide the tool from the chart.

Show In Price Scale: Tick this box to display the last value in the price scale.

Scripting with the RIC

The Relative Index Comparison tool has the ability to display as a line (default) or as a bar or candlestick chart. As a result this indicator has Open / High / Low / Close values, though all but the closing values are hidden by default.

This needs to be considered when building scripts for the RIC indicator, especially when using functions that reference High / Low values such as HighestHigh() and LowestLow().

In the following example you will see a Show Plot has been applied to the RIC with the following script:

HIGHESTHIGH(BARS=30)

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You can see in the above example the red line is not reflecting the highest value of the green RIC line. This is because the default of the HighestHigh will plot the highest value, but the default of the RIC will plot the closing value, and unless it closes on the high there will be a gap.

If we swap the RIC plot to display as a Bar or Candlestick chart you will see the source of the Show Plots value:

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To display the Highest Value of the Close value produced by the RIC we need to adjust the script to the following:

V1 = CLOSE();
HIGHESTHIGH(V1, BARS=30)


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