Equal-weight vs Cap-weight Ratio

Equal-weight vs Cap-weight Ratio maintains the equal-weight vs cap-weight ratio as a regime-aware series rather than a manual symbol division. The equal-weight leg is divided by the cap-weight leg and rebased to 100 at the anchor, so the pane reads as relative performance since that date. A long moving average separates durable shifts from noise: the ratio above it is labeled broad participation, below it narrow leadership.

How to Trade the Equal-weight vs Cap-weight Ratio?

• Broadening / Narrowing Shift: crossings of the long moving average mark durable turns in participation; both directions are alerted.
• Context events: a fresh benchmark high with the ratio below its average flags an advance carried by the largest names; the mirror flags the typical member holding firm through benchmark lows.
• Since-anchor read: distance from the dotted 100 baseline is the equal-weight leg's cumulative result versus the cap-weight leg.

It reads alongside the library's participation and breadth gauges.

Equal-weight vs Cap-weight Ratio Settings

• Equal-Weight Leg (default AMEX:RSP) and Cap-Weight Leg (default AMEX:SPY): pair fund with fund or index with index so the ratio isolates weighting.
• Timeframe (default: chart timeframe) and Dividend-Adjusted Legs (default on): how both legs are requested.
• Rebase To 100 (default on) with Anchor (default First available bar) and Anchor Date (default 1 Jan 2020): the normalization; off plots the raw quotient.
• Type (default SMA) and Length (default 200): the regime-defining moving average.
• Benchmark Swing Lookback (default 50): window flagging fresh benchmark highs and lows.
• Highlight Context Events (default off): optional background tints; alerts fire regardless.
• Display: Show Dashboard, Show Moving Average, Gradient Fill and Anchor Baseline (all on).

Frequently Asked Questions

How does this differ from Participation Divergence at Index Highs?

Participation Divergence at Index Highs grades individual new highs as they print — an event tool. The ratio runs continuously and names the regime; one sets the backdrop, the other scores the moment.

Why rebase to 100?

The raw quotient's level depends on the two legs' arbitrary price scales, so only its direction carries meaning. Rebasing starts both legs from a common point, making the level readable.

Does it work outside US large caps?

Yes — any index with a published equal-weight variant works; set the two legs accordingly. Fund-based pairs embed expense and rebalancing differences that pure index pairs avoid.