Customer Support : 020-61923200, [email protected] | Call and Trade : 020-61923220
In a market analysis, the ratio chart is part of the relative strength analysis.
Ratio charts are produced by dividing the price of the numerator instrument by the price of the denominator instrument.
Therefore, you need to choose the denominator instrument when plotting the ratio chart indicator below the price. The default instrument is Nifty.
Ratio charts that are rising indicate that the stock is outperforming the denominator. A ratio chart that is falling indicates that the stock is underperforming the denominator.
In the book by Prashant Shah on Relative Strength Analysis, the ratio chart indicator is explained in detail right from the beginning. This book is available for free on Shelf.
Scan the QR code to learn more.