This filter looks at the instrument's price change during a specified period, expressed as percentage change (from the starting price toward the end price). It is then compared to the index's percentage change during the same period. If it's greater (or less than) the index's, the instrument will be considered as a buy (or sell).
In other words, you're looking at the instrument's “Rate of Change” (ROC) versus the index's; how fast that instrument is gaining (or losing), compared to the index, during that period.
This filter is similar to the Rate of Change (ROC) Position Filter, but now with the index as the yardstick. So for example, this filter will find instruments that may potentially beat the index.
1. The first parameter defines the period to calculate the ROC of both the instrument and the index.
2. The second parameter defines whether the instrument's ROC must be “Greater than” or “Less than” the index's ROC.
3. The third parameter defines the index to compare against. You can click the little “Chart” icon beside it to open up the index's Price Chart (at the Instrument Tab).
Once this filter is applied, two indicators are displayed below the Price Chart. One indicator is for the instrument's ROC during the specified period, and one indicator is for the index's ROC during that same period.