What a rising ratio means
In A/B, the first instrument is the numerator and the second is the denominator. A rising ratio shows stronger relative movement in the first; a falling ratio shows weaker relative movement. This compares two prices. It is different from RSI, an indicator that measures changes in one instrument using another formula.
A rising ratio does not establish that the first instrument is gaining in absolute price. It may simply be falling more slowly than the second. Examine both ordinary price charts as well. Reversing the pair to B/A reverses the relationship, so symbol order matters.
AAL/RSP: a stock relative to a fund
Enter AAL/RSP. AAL is compared with RSP, the Invesco S&P 500 Equal Weight ETF. An ETF is an exchange-traded fund; this fund holds an equal-weighted index portfolio at rebalancing. Its traded share price is the selected comparison base.
The historical illustration shows daily synthetic bars from 20 May to 20 August 2024. Study the direction of the ratio and changes in relative strength. This demonstrates chart reading rather than judging which historical trade should have been taken.
Both fall while the ratio rises
| Hypothetical point | AAL, $ | RSP, $ | AAL/RSP |
|---|---|---|---|
| Start | 12.00 | 160.00 | 0.075 |
| Later | 10.80 | 128.00 | 0.084375 |
In this hypothetical example, AAL falls 10% and RSP falls 20%. Their ratio rises from 0.075 to 0.084375, a gain of 12.5%. AAL shows relative strength even though its own price falls. These invented numbers explain the arithmetic; they are not quotes from the illustration.
Bitcoin/Ethereum: comparing two cryptocurrencies
For Bitcoin/Ethereum, enter BTC-USD/ETH-USD. Both prices are in dollars, so the common quote currency cancels in division. Hypothetically, Bitcoin at $60,000 and Ethereum at $3,000 give a ratio of 20. If both rise 10%, to $66,000 and $3,300, the ratio stays at 20.
A rising pair indicates Bitcoin strengthening relative to Ethereum; a falling pair indicates Ethereum strengthening relative to Bitcoin. This is neither Bitcoin’s share of total crypto market value nor an executable exchange quote. The illustration uses historical daily data over the same window, including crypto weekends.
How open, high, low and close are built
| Field | Calculation for positive prices |
|---|---|
| O | A.open / B.open |
| H | A.high / B.low |
| L | A.low / B.high |
| C | A.close / B.close |
OHLC means open, high, low and close. SW matches fully completed daily bars of both instruments by their shared exchange calendar date labels. Open is divided by open, and close by close.
With positive prices, the upper calculated bound is A’s high divided by B’s low; the lower bound is A’s low divided by B’s high. These bounds enclose the possible ratio range. Daily data cannot establish whether the two extrema occurred at the same instant, so these are not exact intraday highs and lows of a synchronized pair.
Different trading sessions may also mean that closes with the same date label occur at different times. Source OHLC does not form a total-return series: dividends, splits and provider adjustments require separate consideration. Other platforms can use different ratio-bar conventions.
Closed bars: Friday, Monday and crypto
While Friday’s stock session is still open, or its complete bar has not been published, Thursday is normally the latest available day. Friday can enter after closure and full publication; on Monday it is used if both instruments’ data is ready. This is a completed-session rule, not a ban on all Fridays.
Crypto follows its own UTC daily session, including weekends. Weekly and monthly bars aggregate the shared daily synthetic bars; the current incomplete calendar week or month is excluded.
When data is insufficient
Dates without a matching bar are omitted; an earlier price is never carried forward to fill a gap. If shared history, complete OHLC or a valid denominator is missing, the platform reports insufficient data. A denominator range containing zero cannot produce a valid bar.
Sequential, Combo, D-Wave, DeMarker and other price tools can be studied on a ratio when their required history exists. Their marks describe the synthetic series; rules using highs and lows depend on the bounds explained above. The pair has no volume, so tools or modes requiring volume are unavailable. An indicator mark alone is not a trade instruction.
Open and save your chart
Enter a pair
Type AAL/RSP or BTC-USD/ETH-USD in the instrument field, select daily, weekly or monthly bars and load history. Only two symbols are supported.
Check the data and configure the chart
Read any warnings, enable the price indicators you need and add drawings. Compare with each component’s ordinary price chart.
Save it for later
Add the pair to one of your instrument lists. Save a workspace for the selected indicators; use a separate saved view for the cabinet’s dimensions and panel arrangement.
Questions before you begin
Is this only a closing-price line?
No. The current platform builds synthetic OHLC bars from both instruments’ completed daily bars. High and low are the range bounds explained above.
Can I divide three symbols?
No. Each custom instrument supports exactly two symbols.
Can I trade directly from this chart?
This is an analysis tool. A ratio does not create an exchange instrument or an automatic trade. Opening two separate positions requires a separate decision and risk calculation.
About these examples
These original illustrations use the accepted SW module and historical 2024 Yahoo Finance OHLC fetched on 16 October 2026. Visible window: 2024-05-20 to 2024-08-20. Source snapshots and calculated bars are retained in local project evidence. They are not current quotes, customer screenshots or strategy performance tests.
This article describes SW’s own ratio construction. The sources below explain the general comparison concept and the fund; the platform implementation determines the bar formulas rather than another provider’s conventions.
Price relative: the general comparison concept · RSP: Invesco fund information · Full guide