Asset Comparison Oscillator by Luis Trompeter

The Asset Comparison Oscillator compares the currently opened asset with a user-selected reference symbol to identify periods of relative overvaluation and undervaluation.
The concept is based on the idea that markets constantly seek fair value. When an asset becomes mispriced relative to a meaningful benchmark, it often moves back toward equilibrium.

This indicator measures that relationship and transforms it into an easy-to-read oscillator:
• Green Zone (Undervalued) – The selected asset is undervalued compared to the reference symbol.
This reflects potential upward pressure as markets tend to correct undervaluation over time.
• Red Zone (Overvalued) – The asset is overvalued relative to the reference symbol.
This may indicate a higher likelihood of downward movement as price seeks rebalancing.

Users can set any reference instrument they consider relevant—commodities, indices, currency pairs, or other assets. The oscillator quantifies the valuation difference based on a configurable cycle length.
The recommended setting is Cycle = 10, which provides a balanced and responsive signal structure.

Since this indicator relies on broader valuation dynamics, it is designed to be used exclusively on the daily timeframe. Lower timeframes may not reflect true fundamental value relationships.

The Asset Comparison Oscillator helps traders identify when an asset appears cheap or expensive relative to another, offering an additional layer of fundamental context to support directional trading decisions.