Guides › Taker buy/sell ratio: what it is and how to interpret it
Taker buy/sell ratio: what it is and how to interpret it
The taker buy/sell ratio divides the volume bought at market (buying takers) by the volume sold at market (selling takers) over a period.
- Above 1: more aggressive buying than selling. Buying pressure.
- Below 1: more aggressive selling. Selling pressure.
- Close to 1: balance.
For example, a ratio of 1.15 means that for every 100 BTC sold at market, 115 were bought at market.
Relationship with delta and CVD
It carries the same information as delta, expressed as a ratio instead of a difference. When the ratio and CVD point in the same direction, the reading is more consistent.
Why it is not enough on its own
The ratio measures pressure, not guaranteed direction. There can be plenty of market buying while price does not rise because large limit orders are selling above. That is why in RadarFlow the "Taker buy/sell" gauge (which triggers above 1.10 or below 0.90 on a 3-candle average) is only one piece of the confluence score.