OPEN-SOURCE SCRIPT

SPX 200W MA Valuation Bands (v6 stable)

Overview:

Summary: Plots the S&P (SPX) long-term 200-week moving average with valuation bands to show price relative to a long-term trend.

What it shows:

Primary: 200W MA (200-week moving average).
Bands: Multiple valuation bands around the MA (e.g., ±X% levels or percentile bands).
Coloring: Price/bar colors change when price is above/below bands or MA.

Interpretation / Signals:

Trend: Price above the 200W MA = long-term bullish bias; below = bearish bias.
Over/Under Valuation: Price touching or exceeding upper bands suggests extended/overbought conditions; touching lower bands suggests deep undervaluation or strong sell-offs.
Mean Reversion: Crosses back toward the MA often signal reversion opportunities; sustained moves outside bands indicate regime shifts.

Usage & Settings:

Recommended timeframe: Weekly (uses 200-week MA).
Adjustable: Band widths (percentage or standard deviation), MA length, band count, color scheme.
Alerts: Alerts on price crossing MA, upper band, or lower band for entry/exit notifications.

Notes & Disclaimer:

Use with risk management: Combine with volume, macro context, or other indicators before trading.
Educational only: Not financial advice; past behavior doesn’t guarantee future results.

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

tismail84

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Open-source script

tismail84