What is “Normalized“

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The “Normalize” means to apply MACD(10, 200, 1) on the data you want to study. The theory is to use MA200 as the base in stead of 0, so as to offset the different bases during different period therefore values in different period can be compared on the same ground.

If you don't know why MACD, it's actually: (10 day moving average of Put Call ratio)-(200 day moving average of Put Call ratio). The idea is use MA200 as the base so the 10 day moving averages is not a must. The reason to use MACD is because in StockCharts, if you want to see differences between 2 different moving averages, you have no choice but to use MACD.

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