Ratio charts in ThinkScript are a technical evaluation device that enables merchants to check the value of two totally different property. This may be helpful for figuring out traits, recognizing divergences, and making buying and selling selections. To create a ratio chart in ThinkScript, choose the 2 property you need to evaluate after which click on on the “Ratio” button within the chart toolbar. It will create a brand new chart that exhibits the ratio of the 2 property. The ratio is calculated by dividing the value of the primary asset by the value of the second asset.
Ratio charts can be utilized to determine quite a lot of buying and selling alternatives. For instance, a dealer would possibly use a ratio chart to determine when two property are trending in the identical route however at totally different charges. This might point out that the faster-moving asset is about to catch as much as the slower-moving asset, offering a buying and selling alternative. Ratio charts may also be used to identify divergences. A divergence happens when the value of 1 asset is transferring in a single route whereas the value of one other asset is transferring in the other way. This generally is a signal {that a} development is about to reverse, offering one other buying and selling alternative.