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The normalized close price indicator calculates the price movement of a security by starting with a 100 base value at a specific date.
You just need to specify a start/base date and a security name (optional - if empty then the currently analyzed security will be used) and this function will allow you to plot the percentage move of a security compared to the base price at the specified date.
Example:
Plot the normalized price of two securities on the same chart
a = NormalizedPrice("06/20/2013", "AAPL");
plot(a, "", colorRed);
a = NormalizedPrice("06/20/2013", "FB");
plot(a, "", colorGreen);
Both plotted lines will start at 100 on 06/20/2013. When the value indicates 200 this means that the underlying security has increased by 100% since 20, June 2013.
Here is another example that plots the relative strength of a security compared to the S&P 500 index.
c = NormalizedPrice("06/20/2013", "C");
sp = NormalizedPrice("06/20/2013", "^GSPC");
r = c / sp;
plot(r, "", colorBlue);
This example simply calculates the normalized price of "C" Citigroup, the normalized price of the S&P 500 Index then creates a ratio by dividing the normalized price of "C" by the normalized price of "S&P 500".
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.