Relative Valuation Oscillator

vor 12 Stunden

Relative Valuation Oscillator (RVO) Description

The Valuation_OTC.pine script is a Relative Valuation Oscillator for TradingView that compares the current asset against a reference asset (like Bitcoin, S&P 500, or Gold) to determine if it's relatively overvalued or undervalued.

Key Features:
1. Multiple Calculation Methods:

Simple Ratio - Compares price ratio deviation from average
Percentage Difference - Direct percentage comparison between assets
Ratio Z-Score - Statistical measure (standard deviations from mean)
Rate of Change Comparison - Compares momentum/performance
Normalized Ratio - 0-100 scale centered at zero
2. Customizable Settings:

Reference asset selection (default: BTC/USDT)
Adjustable lookback period (10-500 bars)
Optional smoothing with configurable period
Overbought/oversold level thresholds (default: ±1.5)
3. Trading Signals:

Overvalued - Oscillator above overbought level (red zone)
Undervalued - Oscillator below oversold level (green zone)
Neutral - Between thresholds
Crossover alerts for key levels
Divergence detection (bullish/bearish)
4. Visual Components:

Color-coded oscillator line (green when positive, red when negative)
Optional signal line for additional smoothing
Background shading for valuation zones
Information table showing current metrics and status
Shape markers for crossovers and divergences
5. Alert Conditions:

Overvalued/undervalued alerts
Zero-line crossovers
Divergence signals
This indicator is useful for pairs trading, relative strength analysis, and identifying when an asset is trading at extremes relative to a benchmark asset.

vor 10 Stunden

Versionshinweise

Relative Valuation Oscillator - V2

Short Update Summary:
Relative Valuation Oscillator (RVO) - Updated indicator that compares your asset's performance against a reference asset (default: BTCUSDT).

Key Changes:
Scale: Now oscillates between -100 to +100
Default Method: Rate of Change Comparison (10-period lookback)
Key Levels:
Upper threshold: +4 (thick red line)
Lower threshold: -4 (thick green line)
Zero line: middle reference
Smoothing: 21-period SMA applied by default
Visual: Clean display with optional signal line and entry markers
How to Use:
Above +4: Asset outperforming reference (potential overbought)
Below -4: Asset underperforming reference (potential oversold)
Crosses above -4: Long entry signal
Crosses below +4: Short entry signal
Near 0: Neutral relative performance