AB Ratio — Indicator dictionary

An indicator that compares how far each candle rose above and fell below its open, showing which side was stronger during the session.

Weapon tier: Standard
Slots used: Sub-charts 1/2

Concept

AB Ratio takes the sum, over the last 20 candles, of “how far the price rose from the open to the high (A)”, divides it by the sum of “how far it fell from the open to the low (B)”, and multiplies by 100.

The panel shows a single line with a dotted line at 100. Above 100 the push upward after the open was stronger; below 100 the push downward was stronger.

AB Ratio

Charts by TradingView Lightweight Charts™

This chart was chosen as a scene where the price rose after the line crossed 100. Rising above 100 and soon falling back is common too. Drag the chart sideways with a finger or the mouse to move it, and pinch with two fingers to zoom in. With a keyboard, click the chart, then use ←/→ to move and +/− to zoom.

How it is calculated

For each candle, take A = high − open (how far it went up after the open) and B = open − low (how far it went down).

Add up A over the last 20 candles, and add up B over the same candles.

AB Ratio = sum of A ÷ sum of B × 100. It uses only the open, high and low, not the close.

Parameters

What it sets	Name in the game	Default	Range
Candles over which to add up A and B	period	20	2 – 100

Trading ideas

Rising above 100: when the line has been below 100 for a while and then rises above it, it is commonly read as buyers gaining the upper hand during the session. The chart on this page shows that scene.

Very high or very low: a very high value is sometimes read as the upward push having gone on too long, and a very low value as the downward push having gone on too long.

Common traps

It ignores the close, so a candle that rose a lot during the session and then closed back down still counts as a large A.
On a day that opens far from the previous close (a gap), that gap goes into neither A nor B.
The chart on this page was chosen as a scene where the price rose after the signal. Read it together with the trend (lesson 2) and volume.

In the game

“AB Ratio” is a “Standard” weapon and uses 1 of the “Sub-charts” panels (limit 2). Volume in the starting setup already uses 1, so adding AB Ratio brings it to 2 (0 left).
The panel shows a single line and a dotted line at 100.

Related indicators and lessons

RSI — An indicator that compares recent up moves with recent down moves and shows, as a number from 0 to 100, which side has been stronger lately.
Stochastic — An indicator that shows, on a scale of 0 to 100, where today’s close sits between the lowest and the highest price of the last few candles.
SONAR — An indicator that draws how much an exponential moving average has risen (or fallen) compared with a few candles ago, to read the “slope” of the trend.
TRIX — An indicator that shows by what percent, per candle, a very smooth line — an exponential moving average stacked three times — rises or falls.
CCI — An indicator that shows how many times its usual swing the price has moved away from its recent average.
ROC — An indicator that connects into a line how many percent the close has risen or fallen compared with the close a few candles ago.
Disparity Index — An indicator that shows, around a baseline of 100, how many percent the close is away from its moving average.
Psychological Line — An indicator that reads the market mood, upbeat or gloomy, from the percentage of recent candles that closed higher.
Williams %R — An indicator that shows, as a number from −100 to 0, how far today’s close sits below the highest price of recent candles.
Ultimate Oscillator — An indicator that blends buying pressure over a short, a medium and a long period into a number from 0 to 100.
1. Reading a single candle
2. Trends and sideways moves