UCS_Transactional Valuation Index-Version 2 — Indicator by UDAY_C_Santhakumar

transaction value index valuecharts valuebars

Version 1 -

Updates include
Better Optimization on the levels.
Plotting only the important Highs and Lows

The extremes can be an important pivot levels.

Over and Undervalue - Gray (Column - close) (Histogram - High/Low)
Extreme conditions - Red

Extreme Alerts and Overlay will be added later.

Uday C Santhakumar

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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// Created by UCSgears, Inspired from the Value Bands published recently
// Also Inspired from the Hubert Senters "Death of Fundamentals" Webinar

// Video - https://www.youtube.com/watch?v=LYG2kO_tDtA

study(title="UCS_Transaction Value Index", shorttitle="UCS_TVI", overlay=false)
// INPUT
lbl = input(5, minval=1, title="Look Back Period Length")
sd = input(0.2, minval=0.1, title = "Zone Multiplier")


// Transaction Value Index
tvic = ((close-(sma(close,lbl)))/sma(tr,lbl))/sd
tvih = ((high-(sma(close,lbl)))/sma(tr,lbl))/sd
ptvih = tvih > 4.5 ? tvih:na
tvil = ((low-(sma(close,lbl)))/sma(tr,lbl))/sd
ptvil = tvil < -4.5 ? tvil:na

//
color1= ptvil < -4 and ptvil > -8 ? gray : ptvil < -8 ? red:na
color2= ptvih > 4 and ptvih < 8 ? gray : ptvih > 8 ? red:na

// Horizontal Lines for Zone Seperation
h0=hline(0, "Zero Line", gray, solid, 1)
h1=hline(+4, "Fair Value Top", green, solid, 1)
h2=hline(-4, "Fair Value Bottom", green, solid, 1)
h3=hline(+8, "Over Value", orange, solid, 1)
h4=hline(-8, "Under Value", orange, solid, 1)
h5=hline(+12,"Extremely Over Value", red, solid, 1)
h6=hline(-12,"Extremely Under Value", red, solid, 1)

fill(h1,h2, green, 90, "Fair Value Zone")
fill(h1,h3, orange, 90, "Over Value Zone")
fill(h3,h5, red, 90, "Extremely Over Value Zone")
fill(h2,h4, orange, 90, "Under Value Zone")
fill(h4,h6, red, 90, "Extremely Under Value Zone")
// TVI for High, Low and Close

color3 = (tvic > 4 and tvic < 8) or (tvic < -4 and tvic > -8) ? gray : (tvic > 8 or tvic < -8) ? red : aqua

plot(ptvih, color=color2, title = "TVI - High", style=histogram, linewidth = 2)
plot(ptvil, color=color1, title = "TVI - Low", style=histogram, linewidth = 2)
plot(tvic, color=color3, title = "TVI - Close", style = columns, transp = 0)