Relative Performance Spread**Relative Performance Spread Indicator – Overview**
This indicator compares the **relative performance between two stocks** by normalizing their prices and calculating the **spread**, **area under the curve (AUC)**, or **normalized price ratio**.
### **How It Works**
* **Input**: Select a second stock (`ticker2`) and a moving average window.
* **Normalization**: Each stock is normalized by its own moving average → `norm = close / MA`.
* **Spread**: The difference `spread = norm1 - norm2` reflects which stock is outperforming.
* **AUC**: Cumulative spread over time shows prolonged dominance or underperformance.
* **Bounds**: Bollinger-style bands are drawn around the spread to assess deviation extremes.
### **Usage**
* **Plot Type Options**:
* `"Spread"`: Spot outperformance; crossing bands may signal rotation.
* `"AUC"`: Track long-term relative trend dominance.
* `"Normalized"`: Directly compare scaled price movements.
Use this tool for **pair trading**, **relative momentum**, or **rotation strategies**. It adapts well across assets with different price scales.
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