Normalised Price Crossover - MACD but Tickers

Ever noticed two different tickers are correlated yet have different lags? Ever find one ticker moves first and when the other finally goes to catch up, the first one has already reversed?

So I thought to myself, would be wicked if I took the faster one and made it into a 'Signal Line' and the slow one and made it into a 'Slow Line' almost like a MACD if you will.

So that's what I did, I took the price charts of the tickers and I normalised the price data so they could actually cross, plotted it and sat back to see it generate signals, lo and behold!

Pretty neat, though I'd advise to use spreads and such for the different tickers to really feel the power of the indicator, works well when you use formulas that model actual mechanisms instead of arbitrary price data of different assets as correlation =/= causation.

Enjoy.