Comparison Line is a charting indicator that lets you compare the returns of two separate securities. The line original represents the percentage performance of the stock you are currently studying in the chart. The line comparison represents the percentage return of the security chosen for comparison purposes.
Comparison Line in Practice
The primary purpose of the comparison line would be to allow an investor to review the historical performance of two investments on the same chart. This would be useful to an investor looking to see performance versus a benchmark. These readings give indications into momentum and trend strength. Typical benchmarks might include a proxy of the market like market, sector and industry specific Exchange Traded Funds (ETF).
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The analytical tools described in this article are for information purposes only and their use does not guarantee a profit. None of the information provided should be considered a recommendation or endorsement of any specific investment, tool or strategy. The choice to engage in a specific investment, tool or strategy should be based solely on your research and evaluation of risks involved, your financial circumstances and investment objectives. Securities are subject to market fluctuation and may lose value. Market volatility, volume, and system availability may impact account access and trade execution.