OTC valuation indicator 2.0

3 hari lalu

Valuation Indicator – Relative Asset Valuation Tool (Inspired by Bernd Skorupinski Methodology)


📈 Description:
This script is designed to analyze relative value shifts between two assets—such as Gold (GC1!) and the Dollar Index (DXY)—to identify overvalued and undervalued market conditions. It is inspired by principles from Bernd Skorupinski’s methodology but has been developed with custom adjustments and improvements to enhance flexibility and adaptability across various asset classes.

👉 How It Works:

The script calculates a normalized valuation index by measuring the percentage price deviation between a target asset (e.g., Gold) and a reference asset (e.g., Dollar Index).

A moving average baseline defines fair value, with deviations indicating potential overvaluation or undervaluation.

A volatility-adjusted filter dynamically smooths the output, reducing noise and improving signal accuracy across different market environments.

Parameters such as evaluation period and sensitivity are fully customizable, allowing traders to tailor the tool to commodities, forex, indices, or other asset pairs.

📊 Detailed Example – Gold & Dollar Index Setup:
To demonstrate how the indicator can be used, here’s an example based on a real market scenario:

Context: Identifying high-probability buy setups on Gold when undervaluation is confirmed relative to the Dollar Index.

Conditions:
1️⃣ Gold enters a significant demand zone (identified through traditional technical analysis).
2️⃣ The valuation index (from this script) drops below the -75 level, signaling strong undervaluation


In both October 2022 and October 2023, the valuation index dropped well below -75, and Gold was sitting at major demand zones. The result?



📈 Massive moves to the upside, with Risk-Reward ratios hitting 1:4 or more.
snapshot


This is a textbook Bernd Skorupinski strategy setup, combining macro fundamentals (valuation) with technical structure (demand zones).

This is not just theory — the same conditions repeated multiple times, delivering repeatable, high-probability trades.

This showcases how macro mispricing (Dollar overvalued, Gold undervalued) can be identified visually and quantitatively using the indicator, enabling traders to make more confident, data-backed entry decisions.

⚙️ What Makes It Unique:

Unlike standard correlation or spread indicators, this script combines dynamic volatility filtering with a multi-step comparative analysis to better handle market volatility and price extremes.

It offers flexible asset pairing, allowing traders to adapt the tool to various market scenarios beyond just Gold/DXY—such as Oil vs. Euro or Stocks vs. Forex.

📌 Recommended Use:

Best applied on weekly and daily charts.

Should be combined with other technical tools such as support/resistance levels or demand zones for added confirmation.

Not intended as a standalone signal; it works best as part of a broader market analysis strategy.

semalam

Nota Keluaran

Bernd Skorupinski (inspired) Valuation Indicator| Online Trading Campus

📈 Description:
This script is designed to analyze relative value shifts between two assets—such as Gold (GC1!) and the Dollar Index (DXY)—to identify overvalued and undervalued market conditions. It is inspired by principles from Bernd Skorupinski’s methodology but has been developed with custom adjustments and improvements to enhance flexibility and adaptability across various asset classes.





👉 How It Works:

The script calculates a normalized valuation index by measuring the percentage price deviation between a target asset (e.g., Gold) and a reference asset (e.g., Dollar Index).

A moving average baseline defines fair value, with deviations indicating potential overvaluation or undervaluation.

A volatility-adjusted filter dynamically smooths the output, reducing noise and improving signal accuracy across different market environments.

Parameters such as evaluation period and sensitivity are fully customizable, allowing traders to tailor the tool to commodities, forex, indices, or other asset pairs.

📊 Detailed Example – Gold & Dollar Index Setup:
To demonstrate how the indicator can be used, here’s an example based on a real market scenario:

Context: Identifying high-probability buy setups on Gold when undervaluation is confirmed relative to the Dollar Index.

Conditions:
1️⃣ Gold enters a significant demand zone (identified through traditional technical analysis).
2️⃣ The valuation index (from this script) drops below the -75 level, signaling strong undervaluation




In both October 2022 and October 2023, the valuation index dropped well below -75, and Gold was sitting at major demand zones. The result?


📈 Massive moves to the upside, with Risk-Reward ratios hitting 1:4 or more.
snapshot


This is a textbook Bernd Skorupinski strategy setup, combining macro fundamentals (valuation) with technical structure (demand zones).

This is not just theory — the same conditions repeated multiple times, delivering repeatable, high-probability trades.

This showcases how macro mispricing (Dollar overvalued, Gold undervalued) can be identified visually and quantitatively using the indicator, enabling traders to make more confident, data-backed entry decisions.

⚙️ What Makes It Unique:

Unlike standard correlation or spread indicators, this script combines dynamic volatility filtering with a multi-step comparative analysis to better handle market volatility and price extremes.

It offers flexible asset pairing, allowing traders to adapt the tool to various market scenarios beyond just Gold/DXY—such as Oil vs. Euro or Stocks vs. Forex.

📌 Recommended Use:

Best applied on weekly and daily charts.

Should be combined with other technical tools such as support/resistance levels or demand zones for added confirmation.

Not intended as a standalone signal; it works best as part of a broader market analysis strategy.

1 jam lalu

Nota Keluaran

➡️ On higher time frames, use it to spot reversals or market shifts:
Example: set to 13 weeks on weekly candles.
📈 When trading with the trend (e.g., buying undervalued):
Set the length to 10 or 30 bars.