Love this kind of chart
For so long I never knew you could measure value in different things
Playing around with the denominations is a key financial literacy step that most have never taken
More education needed
🙏🏻
Discussion
In TradingView it’s pretty easy.
1. When entering your ticker, start with an equals sign “=“ to make a formula.
2. Divide by your intended denominator. For example, to see Gold priced in Bitcoin, the formula would be:
=XAUUSD/BTCUSD
The “USD”s cancel, just like dealing with units in chemistry or physics class, and you’re left with XAU/BTC.
3. Tweak the decimal point. TradingView is not good about showing significant digits. So depending on what you’re looking at you may need to bring it up or down. Multiply by a power of 10 to move the decimal.
So my Gold/Bitcoin formula is:
=XAUUSD/BTCUSD*10^4
This moves the decimal four places to the right. The chart will render exactly the same, but instead of numbers like “0.05”, you get numbers like “498.67”.
On log scale, the multiplier makes no difference. Log scales preserve proportional moves, so it’s like A/B vs (A*100)/(B*100). The ratio comes out the same, so the log scale charts look the same. The multiplier is just a convenience for legible numeric labels.
Here’s a fun chart:
=SPX/XAUUSD
That is, the S&P 500 priced in ounces of Gold. You can see that since 1971, when Nixon closed the gold window, you’ve basically BROKEN EVEN.
You were down in the 80’s, up in the dotcom boom, down in the GFC, but back to par now.
This chart shows that virtually all of the stock markets gains are the illusion of growth created by a depreciating fiat currency unit.
this is fun chart, but misses re-investment of dividends which is how people typically use stock market.