OPEN-SOURCE SCRIPT
Multi-Metric Valuation Indicator
Multi-Metric Valuation Indicator - Accumulation/Distribution Signal
This indicator combines six proven technical metrics into a single composite valuation score to help identify optimal accumulation and distribution zones for any asset. Built with the Mayer Multiple as its foundation, it provides a comprehensive view of whether an asset is overvalued or undervalued.
Core Components:
Mayer Multiple - Compares current price to 200-day moving average (traditional Bitcoin valuation metric)
RSI (Relative Strength Index) - Identifies overbought/oversold momentum conditions
Bollinger Band Position - Measures price location within volatility bands
50-Day MA Deviation - Tracks short-term trend strength
Rate of Change (ROC) - Captures momentum shifts
Volume Analysis - Confirms price moves with relative volume strength
How It Works:
Each metric is scored from -1 (extremely undervalued) to +1 (extremely overvalued) using granular thresholds. These scores are averaged into a composite valuation score that oscillates around zero:
< -0.4: Strong Accumulation Zone (dark green background)
-0.4 to -0.2: Accumulation Zone (light green background)
-0.2 to +0.2: Neutral Zone (gray background)
+0.2 to +0.4: Distribution Zone (light red background)
> +0.4: Strong Distribution Zone (dark red background)
Key Features:
Real-time scoring table displays all component values and their individual scores
Color-coded composite line (green = undervalued, red = overvalued)
Background shading for instant visual signal recognition
Built-in alerts for strong accumulation/distribution crossovers
Fully customizable inputs for all parameters
Clean, efficient code using ternary operators and one-line declarations
Best Use Cases:
Long-term position accumulation strategies
Identifying macro market tops and bottoms
Dollar-cost averaging entry/exit planning
Multi-timeframe confirmation (works on daily, weekly, monthly charts)
Risk management and position sizing decisions
Interpretation:
When the composite score drops below -0.4, multiple metrics simultaneously indicate undervaluation - a historically favorable accumulation opportunity. Conversely, scores above +0.4 suggest distribution may be prudent as multiple indicators flash overbought signals.
The indicator is most powerful when combined with fundamental analysis and proper risk management. It's designed to keep emotions in check during extreme market conditions.
This indicator combines six proven technical metrics into a single composite valuation score to help identify optimal accumulation and distribution zones for any asset. Built with the Mayer Multiple as its foundation, it provides a comprehensive view of whether an asset is overvalued or undervalued.
Core Components:
Mayer Multiple - Compares current price to 200-day moving average (traditional Bitcoin valuation metric)
RSI (Relative Strength Index) - Identifies overbought/oversold momentum conditions
Bollinger Band Position - Measures price location within volatility bands
50-Day MA Deviation - Tracks short-term trend strength
Rate of Change (ROC) - Captures momentum shifts
Volume Analysis - Confirms price moves with relative volume strength
How It Works:
Each metric is scored from -1 (extremely undervalued) to +1 (extremely overvalued) using granular thresholds. These scores are averaged into a composite valuation score that oscillates around zero:
< -0.4: Strong Accumulation Zone (dark green background)
-0.4 to -0.2: Accumulation Zone (light green background)
-0.2 to +0.2: Neutral Zone (gray background)
+0.2 to +0.4: Distribution Zone (light red background)
> +0.4: Strong Distribution Zone (dark red background)
Key Features:
Real-time scoring table displays all component values and their individual scores
Color-coded composite line (green = undervalued, red = overvalued)
Background shading for instant visual signal recognition
Built-in alerts for strong accumulation/distribution crossovers
Fully customizable inputs for all parameters
Clean, efficient code using ternary operators and one-line declarations
Best Use Cases:
Long-term position accumulation strategies
Identifying macro market tops and bottoms
Dollar-cost averaging entry/exit planning
Multi-timeframe confirmation (works on daily, weekly, monthly charts)
Risk management and position sizing decisions
Interpretation:
When the composite score drops below -0.4, multiple metrics simultaneously indicate undervaluation - a historically favorable accumulation opportunity. Conversely, scores above +0.4 suggest distribution may be prudent as multiple indicators flash overbought signals.
The indicator is most powerful when combined with fundamental analysis and proper risk management. It's designed to keep emotions in check during extreme market conditions.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Don't force a trade. Wait for your setup, be patient. Trade ideas are my own and not financial advice, I'm a monkey with a phone for crying out loud.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Don't force a trade. Wait for your setup, be patient. Trade ideas are my own and not financial advice, I'm a monkey with a phone for crying out loud.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.