An Index Value Plot is a graph that plots an indexed value, as opposed to an absolute number, and all plotted values are relative to the indexed value. In this particular example of an index value plot for stocks, the raw arms index is plotted, but proves too volatile for any form of deduction, thus, proving that for an Index Value Plot to successfully show an economic trend, it must be indexed over a number of days. For this particular situation, if the plot is an average of the stocks for 10 days, then the information portrays noticeable troughs and peaks.
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