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.
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ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
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ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน
สคริปต์โอเพนซอร์ซ
ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน