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Mid-term Valuation Indicator | MiesOnCharts
Medium-Term Valuation Indicator
This medium-term valuation indicator integrates multiple valuation metrics to assist investors in identifying oversold and overbought market conditions with greater precision.
How it works:
This indicator uses an average of multiple valuation indicators like technical mean reversion, sentiment and on-chain indicators. Its core innovation is an adaptive z-score aggregation that normalizes these diverse inputs (e.g., RSI for mean reversion or NUPL for on-chain sentiment) into a unified score, minimizing noise from isolated metrics and providing a more reliable valuation snapshot than traditional single-indicator tools.
All included indicators have individual flexible metrics, allowing users to customize them as needed. Additionally, the script uses color-coding based on the aggregation of z-scores, which aids in visualizing whether the market is overvalued or undervalued.
How to Interpret:
The indicator employs adaptive standard deviation bands to define extreme market zones. The red band signals a strongly overbought condition, while the green band indicates a significantly oversold condition.
How to Apply:
Investors can leverage these extreme levels as strategic points for taking profits or implementing dollar-cost averaging (DCA) strategies, optimizing entry and exit decisions in the market.
Disclaimer: NOT Financial advice. Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.
This medium-term valuation indicator integrates multiple valuation metrics to assist investors in identifying oversold and overbought market conditions with greater precision.
How it works:
This indicator uses an average of multiple valuation indicators like technical mean reversion, sentiment and on-chain indicators. Its core innovation is an adaptive z-score aggregation that normalizes these diverse inputs (e.g., RSI for mean reversion or NUPL for on-chain sentiment) into a unified score, minimizing noise from isolated metrics and providing a more reliable valuation snapshot than traditional single-indicator tools.
All included indicators have individual flexible metrics, allowing users to customize them as needed. Additionally, the script uses color-coding based on the aggregation of z-scores, which aids in visualizing whether the market is overvalued or undervalued.
How to Interpret:
The indicator employs adaptive standard deviation bands to define extreme market zones. The red band signals a strongly overbought condition, while the green band indicates a significantly oversold condition.
How to Apply:
Investors can leverage these extreme levels as strategic points for taking profits or implementing dollar-cost averaging (DCA) strategies, optimizing entry and exit decisions in the market.
Disclaimer: NOT Financial advice. Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.
Skrip terproteksi
Skrip ini diterbitkan sebagai sumber tertutup. Namun, Anda dapat menggunakannya dengan bebas dan tanpa batasan apa pun – pelajari lebih lanjut di sini.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Skrip terproteksi
Skrip ini diterbitkan sebagai sumber tertutup. Namun, Anda dapat menggunakannya dengan bebas dan tanpa batasan apa pun – pelajari lebih lanjut di sini.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.