OPEN-SOURCE SCRIPT
Larry Williams Valuation Index [tradeviZion]
Stop guessing whether an asset is "cheap" or "expensive." Based on the legendary methodology developed by Larry Williams in 1990 (the WillVal Index), this upgraded indicator measures the true intrinsic valuation of an asset by comparing it against key macroeconomic correlations.
While price tells you what the market is paying right now, Valuation tells you what the asset is actually worth. This isn't just a standard WVI script. We have engineered it into a comprehensive macro-dashboard that evaluates the asset against three universal benchmarks (like the Dollar, Gold, and Treasuries) PLUS a dynamic, auto-detecting Sector ETF.
🌟 Exclusive Features
1. Auto-Sector Relative Strength (The Game Changer)
By default, the script compares your current asset against 3 primary symbols (e.g., DXY, GC1!, ZB1!).
The 4th Asset: The script features a built-in "Sector Brain." It automatically reads the sector of the stock you are viewing (e.g., Technology, Financials, Healthcare) and pulls the data for the corresponding Sector ETF (XLK, XLF, XLV, etc.). This tells you instantly if Apple is undervalued compared to the broader Tech sector!
2. Macro-Locked Calculation (1D)
Valuation is a macro concept, not a 5-minute scalping tool. To protect you from intraday noise, the core mathematical engine is strictly locked to the Daily (1D) Timeframe. You can trade on the 1-minute or 1-hour chart, and the indicator will silently calculate the true daily valuation in the background.
3. Adaptive vs. Fixed Thresholds
Manual Levels: Use the classic Larry Williams fixed thresholds (e.g., Overvalued > 85, Undervalued < 15).
Auto Levels: Markets change. Turn on Auto Levels to let the script dynamically calculate the overbought/oversold thresholds based on recent price extremes, smoothed by a custom multiplier.
4. Multi-Security Consensus Alerts
Reduce false signals. The built-in alert system allows you to require a consensus. For example, you can set the alerts to trigger a "Buy" signal ONLY if at least 3 out of the 4 tracked securities are showing an "Undervalued" reading simultaneously.
5. Clean Visual Dashboard
A sleek, customizable on-chart table displays the exact valuation score (0-100 scale) and the current status (Over, Under, or Normal) for all four correlated assets. The indicator lines change color dynamically when entering extreme valuation zones.
⚙️ How the Math Works
The WillVal methodology doesn't just look at price. It takes the ratio of the current asset against a correlated security, applies a dual Exponential Moving Average (EMA) momentum oscillator to identify trends, and then normalizes the result on a 0-100 scale using a historical lookback period (default is 156 bars, representing roughly 3 years of data).
💡 How to Trade It
Undervalued (Green Zone): When the index drops below the lower threshold (e.g., 15), the asset is historically cheap compared to its correlations. Look for bullish setups or accumulation zones.
Overvalued (Red Zone): When the index rises above the upper threshold (e.g., 85), the asset is historically expensive. This is a warning sign to tighten stop losses, take profits, or look for bearish distribution.
Note: Valuation indicates extreme conditions, but extreme conditions can persist. Always pair valuation readings with price action confirmation (like Order Blocks, VWAP, or trendline breaks) before executing a trade.
While price tells you what the market is paying right now, Valuation tells you what the asset is actually worth. This isn't just a standard WVI script. We have engineered it into a comprehensive macro-dashboard that evaluates the asset against three universal benchmarks (like the Dollar, Gold, and Treasuries) PLUS a dynamic, auto-detecting Sector ETF.
🌟 Exclusive Features
1. Auto-Sector Relative Strength (The Game Changer)
By default, the script compares your current asset against 3 primary symbols (e.g., DXY, GC1!, ZB1!).
The 4th Asset: The script features a built-in "Sector Brain." It automatically reads the sector of the stock you are viewing (e.g., Technology, Financials, Healthcare) and pulls the data for the corresponding Sector ETF (XLK, XLF, XLV, etc.). This tells you instantly if Apple is undervalued compared to the broader Tech sector!
2. Macro-Locked Calculation (1D)
Valuation is a macro concept, not a 5-minute scalping tool. To protect you from intraday noise, the core mathematical engine is strictly locked to the Daily (1D) Timeframe. You can trade on the 1-minute or 1-hour chart, and the indicator will silently calculate the true daily valuation in the background.
3. Adaptive vs. Fixed Thresholds
Manual Levels: Use the classic Larry Williams fixed thresholds (e.g., Overvalued > 85, Undervalued < 15).
Auto Levels: Markets change. Turn on Auto Levels to let the script dynamically calculate the overbought/oversold thresholds based on recent price extremes, smoothed by a custom multiplier.
4. Multi-Security Consensus Alerts
Reduce false signals. The built-in alert system allows you to require a consensus. For example, you can set the alerts to trigger a "Buy" signal ONLY if at least 3 out of the 4 tracked securities are showing an "Undervalued" reading simultaneously.
5. Clean Visual Dashboard
A sleek, customizable on-chart table displays the exact valuation score (0-100 scale) and the current status (Over, Under, or Normal) for all four correlated assets. The indicator lines change color dynamically when entering extreme valuation zones.
⚙️ How the Math Works
The WillVal methodology doesn't just look at price. It takes the ratio of the current asset against a correlated security, applies a dual Exponential Moving Average (EMA) momentum oscillator to identify trends, and then normalizes the result on a 0-100 scale using a historical lookback period (default is 156 bars, representing roughly 3 years of data).
💡 How to Trade It
Undervalued (Green Zone): When the index drops below the lower threshold (e.g., 15), the asset is historically cheap compared to its correlations. Look for bullish setups or accumulation zones.
Overvalued (Red Zone): When the index rises above the upper threshold (e.g., 85), the asset is historically expensive. This is a warning sign to tighten stop losses, take profits, or look for bearish distribution.
Note: Valuation indicates extreme conditions, but extreme conditions can persist. Always pair valuation readings with price action confirmation (like Order Blocks, VWAP, or trendline breaks) before executing a trade.
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。