OPEN-SOURCE SCRIPT
Multi-Metric Valuation Indicator
Multi-Metric Valuation Indicator - Accumulation/Distribution Signal
This indicator combines six proven technical metrics into a single composite valuation score to help identify optimal accumulation and distribution zones for any asset. Built with the Mayer Multiple as its foundation, it provides a comprehensive view of whether an asset is overvalued or undervalued.
Core Components:
Mayer Multiple - Compares current price to 200-day moving average (traditional Bitcoin valuation metric)
RSI (Relative Strength Index) - Identifies overbought/oversold momentum conditions
Bollinger Band Position - Measures price location within volatility bands
50-Day MA Deviation - Tracks short-term trend strength
Rate of Change (ROC) - Captures momentum shifts
Volume Analysis - Confirms price moves with relative volume strength
How It Works:
Each metric is scored from -1 (extremely undervalued) to +1 (extremely overvalued) using granular thresholds. These scores are averaged into a composite valuation score that oscillates around zero:
< -0.4: Strong Accumulation Zone (dark green background)
-0.4 to -0.2: Accumulation Zone (light green background)
-0.2 to +0.2: Neutral Zone (gray background)
+0.2 to +0.4: Distribution Zone (light red background)
> +0.4: Strong Distribution Zone (dark red background)
Key Features:
Real-time scoring table displays all component values and their individual scores
Color-coded composite line (green = undervalued, red = overvalued)
Background shading for instant visual signal recognition
Built-in alerts for strong accumulation/distribution crossovers
Fully customizable inputs for all parameters
Clean, efficient code using ternary operators and one-line declarations
Best Use Cases:
Long-term position accumulation strategies
Identifying macro market tops and bottoms
Dollar-cost averaging entry/exit planning
Multi-timeframe confirmation (works on daily, weekly, monthly charts)
Risk management and position sizing decisions
Interpretation:
When the composite score drops below -0.4, multiple metrics simultaneously indicate undervaluation - a historically favorable accumulation opportunity. Conversely, scores above +0.4 suggest distribution may be prudent as multiple indicators flash overbought signals.
The indicator is most powerful when combined with fundamental analysis and proper risk management. It's designed to keep emotions in check during extreme market conditions.
This indicator combines six proven technical metrics into a single composite valuation score to help identify optimal accumulation and distribution zones for any asset. Built with the Mayer Multiple as its foundation, it provides a comprehensive view of whether an asset is overvalued or undervalued.
Core Components:
Mayer Multiple - Compares current price to 200-day moving average (traditional Bitcoin valuation metric)
RSI (Relative Strength Index) - Identifies overbought/oversold momentum conditions
Bollinger Band Position - Measures price location within volatility bands
50-Day MA Deviation - Tracks short-term trend strength
Rate of Change (ROC) - Captures momentum shifts
Volume Analysis - Confirms price moves with relative volume strength
How It Works:
Each metric is scored from -1 (extremely undervalued) to +1 (extremely overvalued) using granular thresholds. These scores are averaged into a composite valuation score that oscillates around zero:
< -0.4: Strong Accumulation Zone (dark green background)
-0.4 to -0.2: Accumulation Zone (light green background)
-0.2 to +0.2: Neutral Zone (gray background)
+0.2 to +0.4: Distribution Zone (light red background)
> +0.4: Strong Distribution Zone (dark red background)
Key Features:
Real-time scoring table displays all component values and their individual scores
Color-coded composite line (green = undervalued, red = overvalued)
Background shading for instant visual signal recognition
Built-in alerts for strong accumulation/distribution crossovers
Fully customizable inputs for all parameters
Clean, efficient code using ternary operators and one-line declarations
Best Use Cases:
Long-term position accumulation strategies
Identifying macro market tops and bottoms
Dollar-cost averaging entry/exit planning
Multi-timeframe confirmation (works on daily, weekly, monthly charts)
Risk management and position sizing decisions
Interpretation:
When the composite score drops below -0.4, multiple metrics simultaneously indicate undervaluation - a historically favorable accumulation opportunity. Conversely, scores above +0.4 suggest distribution may be prudent as multiple indicators flash overbought signals.
The indicator is most powerful when combined with fundamental analysis and proper risk management. It's designed to keep emotions in check during extreme market conditions.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Don't force a trade. Wait for your setup, be patient. Trade ideas are my own and not financial advice, I'm a monkey with a phone for crying out loud.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Don't force a trade. Wait for your setup, be patient. Trade ideas are my own and not financial advice, I'm a monkey with a phone for crying out loud.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.