Valuationtool
Valuation in trading measures whether a market or asset is currently overvalued or undervalued compared to a reference benchmark — for example, a futures contract, an index, or another correlated instrument like the DXY for USD-based pairs.
When a market is overvalued, it means price has risen significantly above its fair or relative value compared to the benchmark — suggesting potential exhaustion or correction.
When it is undervalued, it means price is trading below its fair value — which can indicate a potential buying opportunity if market conditions align.
A valuation indicator helps visualize these relationships directly on the chart by comparing real-time price behavior to a baseline (e.g., DXY, futures, or another pair).
This allows traders to:
Spot imbalances between spot and futures prices.
Identify when an asset becomes statistically expensive or cheap.
Combine it with supply/demand or price action signals for high-probability entries.
In short, valuation tools provide a quantitative edge — helping traders see when markets deviate too far from equilibrium, so they can anticipate potential reversions or continuations with greater confidence.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact SDprof directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact SDprof directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.