UCSgears_Transaction Valuation Index

Here is the Version 2 of the TVI indicator posted earlier.

This is inspired from the Value Charts Indicator.

Version 1

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.

// Created by UCSgears, Inspired from the Value Bands published recently
// Also Inspired from the Hubert Senters "Death of Fundamentals" Webinar
// Version 2 Utilizes the Plotbar feature. 

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

// Transactional Value
tvio = ((open-(sma(close,lbl)))/sma(tr, lbl))/sd
tvic = ((close-(sma(close,lbl)))/sma(tr, lbl))/sd
tvih = ((high-(sma(close,lbl)))/sma(tr, lbl))/sd
tvil = ((low-(sma(close,lbl)))/sma(tr, lbl))/sd
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, dashed, 1)
h4=hline(-8, "Under Value", orange, dashed, 1)
h5=hline(+12,"Extremely Over Value", red, dashed, 2)
h6=hline(-12,"Extremely Under Value", red, dashed, 2)
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")

palette = open <= close ? green : red
plotbar(tvio,tvih,tvil,tvic, color=palette, title = "TVI Bars")