There are a few dozen indicators we report on the Forex Factory calendar that are based on a diffusion index, whereby a reading below 50.0 signals contraction/pessimism and a reading above 50.0 signals expansion/optimism (e.g., Ivey PMI, ISM Manufacturing PMI, Economy Watchers Sentiment, NAHB Housing Market Index).
Today we launched a modification to the charting for these diffusion index indicators that breaks the chart’s y-axis at 50.0 rather than the standard 0.0. This minor tweak aligns the chart visual with the indicator’s intended interpretation.
Before (chart breaks at 0.0):
After (chart breaks at 50.0):
You will have a chance to put this modification to use on Tuesday when there is a handful of PMI indicators being released for the Eurozone.
Posted by Tim, Forex Factory Senior Economist