Luis-Enrico Valuation Tool

The valuation tool evaluates the relative, fundamentally driven performance of the current market by comparing it to key macroeconomic reference assets.
Rather than analyzing price action in isolation, the indicator places the instrument into an intermarket and capital-flow context, highlighting relative overvaluation and undervaluation across asset classes.


Reference Markets
The current market can be compared to the following reference assets:

US Dollar Index (DXY)

Gold

US Treasury Bonds

A user-selectable custom market


The custom market is set by default to the Euro FX futures contract and can be adjusted according to analytical requirements.


Methodology:
The indicator measures relative performance by comparing the percentage price change of the current market with that of each reference asset over a fixed lookback period.
The resulting performance differences are normalized to a common scale, allowing structurally different markets to be evaluated within a unified framework.


Scale and Interpretation
All values are mapped to a standardized range from −100 to +100:

Positive values indicate relative overvaluation

Negative values indicate relative undervaluation

Values near zero indicate balanced relative valuation

This structure supports consistent interpretation across different market environments.




Background highlighting is used solely to emphasize extreme relative valuation conditions and serves as visual context only.

Intended Use
The indicator is designed for fundamental and macro-oriented market analysis, supporting intermarket comparison and relative valuation assessment as part of discretionary decision-making.