Ratio charts in ThinkScript are a technical evaluation software that permits merchants to match the value of two completely different belongings. This may be helpful for figuring out tendencies, recognizing divergences, and making buying and selling selections. To create a ratio chart in ThinkScript, choose the 2 belongings you wish to evaluate after which click on on the “Ratio” button within the chart toolbar. This may create a brand new chart that reveals the ratio of the 2 belongings. 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 establish quite a lot of buying and selling alternatives. For instance, a dealer may use a ratio chart to establish when two belongings 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 can be used to identify divergences. A divergence happens when the value of 1 asset is shifting in a single path whereas the value of one other asset is shifting in the other way. This could be a signal {that a} pattern is about to reverse, offering one other buying and selling alternative.
