Ratio charts in ThinkScript are a technical research device that permits buyers to match the cost of two other property. This may also be helpful for figuring out tendencies, recognizing divergences, and making buying and selling selections. To create a ratio chart in ThinkScript, make a selection the 2 property you wish to have to match after which click on at the “Ratio” button within the chart toolbar. This will likely create a brand new chart that displays the ratio of the 2 property. The ratio is calculated via dividing the cost of the primary asset via the cost of the second one asset.
Ratio charts can be utilized to spot quite a lot of buying and selling alternatives. For instance, a dealer may use a ratio chart to spot when two property are trending in the similar route however at other charges. This would point out that the faster-moving asset is ready 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 cost of one asset is transferring in a single route whilst the cost of any other asset is transferring in the other way. This is a signal {that a} fashion is ready to opposite, offering any other buying and selling alternative.
