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The Complete Guide to Comparison IndicatorsThe comparison indicator is a technical tool that analyzes relationships between two or more securities, indices, or markets.
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The comparison indicator is a technical tool that analyzes relationships between two or more securities, indices, or markets. It compares prices, volume, and/or volatility, determining which instrument is relatively stronger or weaker over the chosen time frame. This type of analysis elicits a series of convergence and divergence signals, with the leading instrument generating a bullish divergence when it gets even stronger compared to the lagging instrument, and a bearish convergence when it gets even weaker compared to the lagging instrument.
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