Ratio charts in ThinkScript are a technical evaluation instrument that enables merchants to check the worth 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 need to examine 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 worth of the primary asset by the worth of the second asset.
Ratio charts can be utilized to determine a wide range of buying and selling alternatives. For instance, a dealer may use a ratio chart to determine when two belongings are trending in the identical course 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 course whereas the worth of one other asset is transferring in the wrong way. This could be a signal {that a} development is about to reverse, offering one other buying and selling alternative.
