Ratio charts in ThinkScript are a technical research software that permits investors to check the cost of two other belongings. This can also be helpful for figuring out developments, recognizing divergences, and making buying and selling selections. To create a ratio chart in ThinkScript, make a selection the 2 belongings you need to check after which click on at the “Ratio” button within the chart toolbar. This will likely create a brand new chart that presentations 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 numerous buying and selling alternatives. For instance, a dealer would possibly use a ratio chart to spot when two belongings are trending in the similar path however at other charges. This would 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 shifting in a single path whilst the cost of every other asset is shifting in the wrong way. It is a signal {that a} fashion is set to opposite, offering every other buying and selling alternative.
