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that seeks to incorporate the Gold Ratio into a stock just like the Gold -Dow Ratio ..Its a Gold, Stock Ratio ….It does show the range that a stock trades relative to Gold .It shows how many shares it takes to buy a ounce of Gold at current prices for both and establishes a RANGE for the number of shares it takes for a given period of time. The guide is that Gold is the yardstick as a tool for measuring the normal range for a stock .So SLW has a near term(5 year) bottom of 9.50 and a range near $42 as a top .It suggests SLW is at the bottom and extreme end of the range.The solid black line suggests the top price given current conditions & current gold prices .as is visible large swings occur where sometimes SLW is over valued when solid black line is below the trading price ans suggests a fair price when the lines cross .But always seems to oscillate between over valued and undervalued while always comparing how it establishes the high and lows compared to GOLD …the yardstick..I use RENKO charts to reduce false signals and two versions of slow stochastic a reliable momentum signal.It seems to be accurate for determining tops and bottoms within the range .
The Ratio is super imposed behind the price chart so one can see how it oscillates above and below current price.
It also works very well for DJIA and shows how over priced DOW stocks are compared to GOLD as in DOW, GOLD RATIO and suggests currently a 40-50 % overprice currently in which case the Solid black line is pictured below and stock price at some higher level while the spread shows the degree of overprice again compared to current Gold Price (the yardstick) .Using Gold in this manner gives a stable starting point rather than something like R/E Ratios which are functions of money rates and subject to manipulation .