Ratio charts in ThinkScript are a technical research instrument that permits buyers to match the cost of two other belongings. This will also be helpful for figuring out traits, recognizing divergences, and making buying and selling choices. To create a ratio chart in ThinkScript, make a choice the 2 belongings you wish to have to match after which click on at the “Ratio” button within the chart toolbar. This may create a brand new chart that displays the ratio of the 2 belongings. The ratio is calculated by way of dividing the cost of the primary asset by way of the cost of the second one asset.
Ratio charts can be utilized to spot quite a lot of buying and selling alternatives. As an example, a dealer may use a ratio chart to spot when two belongings are trending in the similar course however at other charges. This may point out that the faster-moving asset is set to catch as much as the slower-moving asset, offering a buying and selling alternative. Ratio charts can be used to identify divergences. A divergence happens when the cost of one asset is transferring in a single course whilst the cost of every other asset is transferring in the other way. It is a signal {that a} fashion is set to opposite, offering every other buying and selling alternative.
