Aggression Ration Analysis

📊 Aggression Ratio – What it shows

This indicator measures market pressure by comparing selling volume vs buying volume:

• Ratio = Sell Volume / Buy Volume
• 
  It reflects who is more aggressive in the market at any moment.
  

🔍 Interpretation

• Ratio > 1.0 (Red)
  
  → Selling pressure dominates
  
  → More aggressive sellers (potential bearish sentiment)
  
• Ratio < 1.0 (Green)
  
  → Buying pressure dominates
  
  → More aggressive buyers (potential bullish sentiment)
  
• Ratio ≈ 1.0
  
  → Balanced market (buyers ≈ sellers)
  

⚙️ Smoothing Logic

• 
  Uses either:
  
• EMA (default) → faster, reacts quickly to changes
  
• SMA → smoother, slower response
  
• 
  Smoothing helps reduce noise from raw order flow spikes.
  

📈 Visualization

• Column mode (default):
  
  Easy visual of shifting dominance between buyers and sellers.
  
• Optional ratio line:
  
  Helps track trend in aggression over time.
  
• Baseline at 1.0:
  
  Critical threshold separating bullish vs bearish pressure.
  

🧠 Practical Insight

• Sustained >1 → Strong selling trend / possible continuation down
  
• Sustained <1 → Strong buying trend / possible continuation up
  
• Sharp spikes → Potential exhaustion or reversal zones
  
• Divergence vs price → Early signal of weakening trend
  

⚠️ Important Note