Commodity Spread Charting

rmoskal · August 2014

Does anyone know how to make a chart that represents the spread between two commodities?

gord · August 2014

This is a new feature that was announced at ChartCon2014.

Difference Symbols
• We have always had ratio (division) symbols for charting relative strength - ex. IBM:$SPX
• Now we also support difference (subtraction) symbols for charting spreads ex. $TYX-$TNX

http://stockcharts.com/h-sc/ui?s=$TYX-$TNX&p=D&yr=2&mn=0&dy=0&id=p10772574509

dreamtalk · August 2014

You can also use Relative Rotation Graph (RRG) Charts. Here is an example for Gold (GLD) and Copper (CU). RRG Charts are great for pair trading.
http://stockcharts.com/freecharts/rrg/?s=CU,GLD&b=$SPX&p=w&y=1&t=10&d=20140826&r=95.91,104.06,98.25,101.46&f=tail,d

Julius_RRG · September 2014

Hi Dreamtalk, excellent use of RRG! The only think you may want to look at is the benchmark that you use. In this case you are using the (default) S&P 500 EQUITY index with two commodities, precious metals to be precise. You will probably get an even better handle when you apply a more suitable benchmark like $DJAIG (a broad commodity market index) or $DJAPR (a precious metals index).

Commodity Spread Charting

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