How to Use Ratio Charts in TradingView: A Hidden Gem for Traders

In the world of trading, understanding how to analyze the relative performance of two assets can offer traders significant insights into market trends and investment opportunities. Ratio charts are an essential tool in this process, allowing traders to compare the performance of two symbols on a single chart. This article delves into the concept of ratio analysis, offering a step-by-step guide on how to create and interpret ratio charts for smart trading decisions in TradingView. By the end of this guide, readers will have a deeper understanding of how to use ratio charts to make more informed and strategic trades.

Introduction

Most traders are familiar with traditional price charts, candlestick patterns, and moving averages. But few explore one of the most underrated yet powerful tools in TradingView: the ratio chart. If you’ve ever wanted to compare the performance of one asset against another — like Bitcoin vs. Ethereum, AAPL vs. SPY, or Gold vs. USD — ratio charts are your secret weapon.

This article is a complete guide to understanding, using, and mastering ratio charts in TradingView. Whether you’re trading stocks, crypto, forex, or commodities, this technique can unlock a new level of market insight.

What Is a Ratio Chart?

A ratio chart is a custom chart that displays the relative performance of one asset against another. It is created by dividing the price of one symbol by another — for example:

BTCUSD/XAUUSD

The resulting chart shows how one asset is performing in relation to the other. If the chart is trending upwards, it means the numerator (the first symbol) is outperforming the denominator (the second symbol).

Additional explanation

“Please note that for comparing the charts of two symbols, you can either view both price curves on a single chart and compare their price movements, or you can compare the return curves of the two symbols on one chart. However, neither of these methods represents the relative comparison discussed in this article. Here, we are only dealing with one curve that represents the price movement ratio of two symbols. The data for the relative curve of two symbols is actually derived from dividing the price of one symbol by the price of the other.”

Why Use Ratio Charts?

Here, we will explain in a headline what are the benefits of using a ratio chart.

1. Identify Relative Strength or Weakness

Instead of looking at charts separately, ratio charts reveal which asset is gaining more value relative to the other.

2. Enhance Pair Trading Strategies

For traders who trade spreads or long/short positions on correlated assets, ratio charts help spot entry and exit points.

3. Compare Any Market

Stocks, crypto, forex, ETFs — as long as both assets are chartable on TradingView, they can be compared.

How to Create a Ratio Chart in TradingView

Creating a ratio chart in TradingView is surprisingly simple. Here’s how:

✅ Step-by-Step:

آموزش گام به گام تحلیل بنیادی برای انتخاب سهم مناسب

برای دانلود کتاب آموزش گام به گام تحلیل بنیادی روی لینک زیر کلیک کنید.

آیا میخواهید در بورس به موفقیت برسید؟ آیا نمیدانید چگونه یک سهم را از منظر بنیادی تحلیل کنید؟ نبود منبع آموزشی مناسب در زمینه تحلیل بنیادی انگیزه ای شد تا در یک کتاب آموزشی به زبانی کاملا ساده و کاربردی، به کمک تصاویر گویا و آموزش گام به گام، روش انتخاب یک سهم را بر اساس نکات بنیادی آموزش داده ایم. قطعا این روش آموزشی را در هیچ کجا پیدا نخواهید کرد! این کتاب الکترونیکی را به تمام کسانی که می خواهند در بازار بورس به موفقیت مستمر برسند توصیه میکنیم .

خرید و دانلود کتاب (قیمت با تخفیف: 45 هزار تومان)

1- Open TradingView.

2- In the top search bar, type in the ratio you want to chart. For example:
BTCUSDT/XAUUSD

3- Press Enter.

4- TradingView will generate the ratio chart automatically.

If we want to explain the above steps visually, it would be as follows:

You can use any two compatible symbols. The key is that both must be available in the same price format (e.g., both in USD).

Pro Tip:

You can even add indicators (like RSI, MA, Bollinger Bands) on ratio charts, just like normal charts.

Practical Examples

Here are some practical examples of ratio charts that are notable and are usually paid attention to by analysts.

🔹 Example 1: BTCUSD / ETHUSD

This ratio helps you see which crypto is leading the market. If the chart goes up, BTC is stronger than ETH.

🔹 Example 2: AAPL / SPY

Compare Apple’s performance against the S&P 500 index. A rising chart suggests Apple is outperforming the broader market.

🔹 Example 3: XAUUSD / USDOLLAR

Analyze gold’s strength against the US Dollar index. Great for macro trend insight.

Advanced Tips and Tricks

🔍 Add Ratio Charts to a Watchlist

You can add custom ratio tickers to your TradingView watchlist by simply saving the chart. It works just like any other symbol.

Use Alerts on Ratio Charts

Set alerts based on ratio price levels or indicators to catch key movements.

🔄 Combine With Multi-Timeframe Analysis

Apply ratio charts across different timeframes (daily, weekly, etc.) to find long-term vs. short-term strength shifts.

Common Mistakes to Avoid

• ❌ Ignoring volume — ratio charts do not show volume, so use other confirmation tools.
• ❌ Forgetting to interpret directionality (an uptrend doesn’t mean both assets are rising — only that one is rising faster).

What does the slope of the ratio chart represent?

If the slope of the ratio chart is negative (regardless of the range), it means that the stock in the numerator (in the above example, Vatsom) is declining compared to the stock in the denominator (in the above example, Vosepe). On the other hand, if the slope of the ratio chart is positive, it means that the price of the stock in the numerator is improving relative to the stock in the denominator.

Very important note: When we say that if the slope of the ratio chart is positive, it means the price of the stock in the numerator is improving compared to the stock in the denominator, this does not mean that the price of the numerator stock is increasing. The same holds true for a negative slope. To understand this concept, consider the following example.

An example to clarify the point:

Suppose the ratio chart of Bitcoin to Gold is increasing (its slope is positive). This could be due to one of the following scenarios:

• The price of Gold is stable, and the price of Bitcoin is increasing.
• The price of Gold is decreasing, and the price of Bitcoin is stable.
• The price of Gold is decreasing, but the price of Bitcoin is increasing.
• The price of Gold is decreasing, and the price of Bitcoin is also decreasing, but Bitcoin’s decline is less than Gold’s decline.
• The price of Gold is increasing, and the price of Bitcoin is also increasing, but Bitcoin’s growth is greater than Gold’s growth.

As you can see, in all five scenarios above, the price of Bitcoin relative to Gold is improving, and the slope of the ratio curve is positive. However, this does not necessarily mean that the price of Bitcoin is increasing.

Exclusive File for Purchase!
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Tasks You Can Accomplish Using Artificial Intelligence for Ratio Analysis (Beyond TradingView’s Built-in Features)

Ratio analysis between two or more symbols is a critical method for comparing the strength and weakness of assets relative to each other. TradingView offers basic capabilities for this task, but with the help of artificial intelligence (AI) and custom scripts, much more advanced and creative analyses can be conducted. Here are some practical ideas:

1. Creating Conditional Ratio Scripts

With AI, you can calculate the ratio between two assets only under certain conditions. For instance, the ratio might be calculated only when trading volume is above the average, or when the prices of both assets fall within a specific range. These filters help eliminate noise and enhance the quality of analysis.

2. Comparing Relative Averages and Issuing Smart Signals

A script can compare the ratio of two assets to their moving average and generate buy or sell signals whenever there’s a significant deviation (for example, the ratio moves far above or below the average). This technique helps identify hidden trading opportunities more promptly.

3. Calculating Composite Ratios of Multiple Assets

Instead of a simple ratio between two assets, you can create more complex ratios. For example, the weighted sum of several assets in the numerator divided by the sum of different assets in the denominator. This method is useful for comparing the performance of two portfolios or asset baskets.

4. Smart Alerts Based on Price Pattern Breakouts

AI can automatically detect the breakout of trend lines, channels, or patterns like triangles on the ratio chart and send alerts when such breakouts occur. This feature isn’t natively available on TradingView for ratio charts and would need to be custom-built.

We have packed all these topics into a comprehensive PDF guide, teaching you everything step-by-step. After reading this guide, you’ll be fully equipped to harness the power of AI for advanced ratio analysis between two assets — easily and with confidence.

Final Thoughts

Ratio charts are one of the smartest, simplest ways to gain an edge in trading. Whether you’re a crypto enthusiast, stock investor, or macro trader, learning to read relative performance will change how you analyze the markets.

Explore it today on TradingView — and keep this tool in your back pocket.

Need more ratio setups or help customizing your TradingView dashboard? Feel free to reach out or check our premium guide.