Lesson 9: COIN RATIO and TOTAL RATIO

COIN RATIO
The COIN RATIO indicator measures the ratio between the volumes of buy (bid) and sell (ask) limit orders for the cryptocurrency you select.
It helps you understand which side (buyers or sellers) is stronger at a given depth, and by how many times.

The indicator's value is calculated by the formula:
delta=bid/ask
where bid and ask are the volumes of limit orders at the selected depth.
delta = 1 = limit buyers and sellers are equal.

Example:
At the 1.5% depth the bid volume is $100 mln and the ask volume is $50 mln.
RATIO=100/50=2
D1.5% = 2
This indicates that buyers at the 1.5% depth dominate by a factor of 2.

Example 2:
At the 3% depth the bid volume is $30 mln and the ask volume is $60 mln.

RATIO=30/60=0.5
D3% = 0.5
This indicates that sellers at the 3% depth dominate by a factor of 2.

Available analysis levels: 1.5%, 3%, 5%, 8%, 15%, 30%, 60%.

To open the indicator:
- go to the [DYOR] Indicators menu at the top of Multichart.
- select the COIN RATIO indicator

To open the indicator settings:
- hover your cursor over the top left part of the opened indicator
- click ⚙(the gear icon)

To enable\disable the depths with the data you are interested in:
- click the STYLE tab
- check\uncheck the boxes next to the depths
- depths without a checkmark will no longer be displayed in the indicator

Reference points.

The indicator helps identify zones of potential demand. For example, for a long:

• RATIO at the nearest depths (1.5%–3%) has values > 1.2.

• The other RATIO values are arranged in descending order, where d1.5 has the highest value and d30-d60 the lowest.

It is important that the highest RATIO value is at the nearest depth. This shows that limit orders are protecting the price close to the market price, while limit orders are also present at greater depth, which can prevent a significant price drop.

Synchronization with other indicators is important for confirmation.  

TOTAL RATIO.
The TOTAL RATIO indicator measures the ratio of limit buy (bid) and sell (ask) order volumes for all coins at the selected depth. 

The indicator value is calculated using a similar formula:

RATIO=bid/ask
where bid and ask are the volumes of limit orders at the selected depth across all coins.

Example:
At the 1.5% depth, the total bid volume across all coins is $500 million, and the total ask volume is $300 million.

RATIO=500\300=1.67
Total RATIO 1.5% =1.67
This indicates that buyers are dominating in the overall market.
Available analysis levels: 1.5%, 3%, 5%, 8%, 15%, 30%, 60%.

The difference between COIN RATIO and TOTAL RATIO

COIN RATIO analyzes a specific cryptocurrency, providing a local picture of demand and supply.
This lets traders understand how buyers and sellers are positioned around a single coin.

TOTAL RATIO, in turn, aggregates data across all cryptocurrencies in the market, providing an overall picture of the market situation. 
This lets you assess the overall strength of demand and supply across all assets.

Key differences:

• COIN RATIO helps analyze individual coins.

• TOTAL RATIO gives an overall view of the market as a whole, taking all coins into account.

🎉 Congratulations! 🎉

You have successfully completed the lesson on COIN RATIO and TOTAL RATIO!