This is an Relative Valuation Indicator to make buy or sell decisions the S&P BSE Large cap Index vs S&P BSE Mid cap Index.
The chart is self explanatory to make buy or sell decisions, incase it is not clear pls see below instructions
1. Do a normal SIP either in LC index or MC index if the relative trend is between 0.43 and 0.37. 2. 2x Buy/Sell LC or MC indices if the relative trend is above 0.43 and 0.37 but between 0.46 and 0.34 respectively 3. 3x Buy/Sell LC or MC indices if the relative trend is above 0.46 and 0.34 but between 0.49 and 0.31 respectively. 4. 4x Buy/Sell LC or MC indices if the relative trend is beyond 0.49 and less than 0.31