Ratio charts in ThinkScript are a technical evaluation instrument that enables merchants to check the worth of two completely different property. This may be helpful for figuring out tendencies, recognizing divergences, and making buying and selling choices. 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 reveals the ratio of the 2 property. The ratio is calculated by dividing the worth of the primary asset by the worth of the second asset.
Ratio charts can be utilized to establish quite a lot of buying and selling alternatives. For instance, a dealer would possibly use a ratio chart to establish when two property are trending in the identical path however at completely 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 worth of 1 asset is transferring in a single path whereas the worth of one other asset is transferring in the other way. This could be a signal {that a} pattern is about to reverse, offering one other buying and selling alternative.
