ucsgears

UCSgears_Transaction Valuation Index

Here is the Version 2 of the TVI indicator posted earlier.

This is inspired from the Value Charts Indicator.


Version 1
UCSgears_Transaction Valuation Index

UCSgears_Transaction Valuation Index
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// Created by UCSgears, Inspired from the Value Bands published recently
// Also Inspired from the Hubert Senters "Death of Fundamentals" Webinar
// Version 2 Utilizes the Plotbar feature. 

study(title="UCS_Transactional Valuation Index", shorttitle="UCS_TVI", overlay=false)
// INPUT
lbl = input(5, minval=1, title="Look Back Period Length")
sd = input(0.2, minval=0.1, title = "Zone Multiplier")

// Transactional Value
tvio = ((open-(sma(close,lbl)))/sma(tr, lbl))/sd
tvic = ((close-(sma(close,lbl)))/sma(tr, lbl))/sd
tvih = ((high-(sma(close,lbl)))/sma(tr, lbl))/sd
tvil = ((low-(sma(close,lbl)))/sma(tr, lbl))/sd
h0=hline(0, "Zero Line", gray, solid, 1)
h1=hline(+4, "Fair Value Top", green, solid, 1)
h2=hline(-4, "Fair Value Bottom", green, solid, 1)
h3=hline(+8, "Over Value", orange, dashed, 1)
h4=hline(-8, "Under Value", orange, dashed, 1)
h5=hline(+12,"Extremely Over Value", red, dashed, 2)
h6=hline(-12,"Extremely Under Value", red, dashed, 2)
fill(h1,h2, green, 90, "Fair Value Zone")
fill(h1,h3, orange, 90, "Over Value Zone")
fill(h3,h5, red, 90, "Extremely Over Value Zone")
fill(h2,h4, orange, 90, "Under Value Zone")
fill(h4,h6, red, 90, "Extremely Under Value Zone")

palette = open <= close ? green : red
plotbar(tvio,tvih,tvil,tvic, color=palette, title = "TVI Bars")
This will only work if price is forming a bell curve.
Have you used it for trading?
A profile would be more useful in my opinion, market profile, with TPOs based on time at price instead of volume.
Reply
ucsgears PRO IvanLabrie
a year ago
Well, based on the info i got from VC, they picks the signals on daily and mostly scalp it intraday. Against the trend, extreme valuation etc...
Reply
Nice! I love it.
As the name implies, Value. I prefer to trade from the standpoint of getting into a trade knowing I have value baked in. As traders we have to extract that value by means of measurement and this tool does exact that....assists us in finding the value AFTER we get a signal, not before. Here I offer just a crude manner in which I do that, one sell and one buy. After a trader gets directional bias, the TVI can help pinpoint an exact point to enter with value.
snapshot
+1 Reply
ucsgears PRO coondawg71
a year ago
This is not very different from any oscillator. Its got its +/- as well. As an educated trader, we need to know how to pick the signals. Just like you did.
+1 Reply
coondawg71 PRO ucsgears
a year ago
Yes, work is needed to extract the information that sits before us in a price chart. Unfortunately, too many traders expect/want the easy way out with a simple Buy Sell signal. Good traders work, the rest that are in the mix... donate. Thanks for sharing your efforts.
+1 Reply
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