B&C-Normalization

[Chuck]

If you want to compare two (or more) indicators that have values much different that are non-receptive to comparison, you can normalize each of the two (or more) indicators and compare them on a basis you define i.e. 0 to 100%, -1 to +1, -100 to +100, or whatever you want. Below is the code to do normalization and an example. Note that not all studies can be normalized e.g. 'AccDist' has no parameters and cannot be normalized.

Code that does normalization

#Usage: 'input data = close' is substituted by an indicator and its parameters.
declare lower;

script normalizePlot {
  input data = close;
  input newRngMin = -1;
  input newRngMax = 1;

  def HHData = HighestAll( data );
  def LLData = LowestAll( data );
  plot nr = ((( newRngMax - newRngMin ) * ( data - LLData )) / ( HHData - LLData )) + newRngMin;
}

Examples

input price = close;
input CCI_length = 7;
input Momentum_length = 12;
input RSI_length = 4;
input WR_length = 10;
input newRngMax = 100;#Maximum normalized  value
input newRngMin = 0;#Minimum normalized  value
input OverBought = 80;#Fixed value upper line for reference
input OverSold = 20;#Fixed lower value line for reference

def newCCI = normalizePlot( CCI( CCI_length).CCI, newRngMin, newRngMax );
def newMomentum = normalizePlot( Momentum( length = Momentum_length ).Momentum, newRngMin, newRngMax );
def newWPR = normalizePlot( WilliamsPercentR( length = WR_length ).WR, newRngMin, newRngMax );
def newRSIWilder = normalizePlot( RSIWilder( length = RSI_length ).RSI, newRngMin, newRngMax );

plot CCI = newCCI;
plot Momentum = newMomentum;
plot WPR = newWPR;
plot RSIWilder = newRSIWilder;
plot Over_Bought = 80;
plot Over_Sold = 20;