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Monest Value Indicator (MVI)

Description
The Monest Value Indicator (MVI) is a modern oscillator designed to address common issues in traditional oscillators like RSI or MACD. Unlike classical oscillators, the MVI dynamically adjusts to relative price movements and market volatility, providing a transparent and reliable valuation for short-term trading decisions.
This indicator normalizes price data around a consensus line and accounts for market volatility using the Average True Range (ATR). It highlights overbought and oversold conditions, offering a unique perspective for traders.
Key Features
- []Dynamic Overbought/Oversold Levels: Highlights significant price extremes for better entry and exit signals. []Volatility Normalization: Adapts to market conditions, ensuring consistent readings across various assets. []Consensus-Based Valuation: Uses a moving average of the midrange price for baseline calculations. []No Lag or Stickiness: Reacts promptly to price movements without getting stuck in extreme zones.
How It Works
- Consensus Line:
Calculated as a 5-day moving average of the midrange:
Consensus = SMA((High + Low) / 2, 5). - Offset OHLC Data:
All prices are adjusted relative to the consensus line:
Offset Price = Price - Consensus. - Volatility Normalization:
Adjusted prices are normalized using a 5-day ATR divided by 5:
Normalized Price = Offset Price / (ATR / 5). - MVI Calculation:
The normalized closing price is plotted as the MVI. - Overbought/Oversold Levels:
Default levels are set at +8 (overbought) and -8 (oversold).
How to Use
- Identifying Overbought/Oversold Conditions:
When the MVI crosses above +8, the asset is overbought, signaling a potential reversal or pullback.
When the MVI drops below -8, the asset is oversold, indicating a potential bounce or upward move. - Trend Confirmation:
Use the MVI to confirm trends by observing sustained movements above or below zero.
Combine with other trend indicators (e.g., Moving Averages) for robust analysis. - Alerts:
Set alerts for when the MVI crosses overbought or oversold levels to stay informed about potential trading opportunities.
Inputs
- []ATR Length: Default is 5. Adjust to modify the sensitivity of volatility normalization. []Consensus Length: Default is 5. Change to tweak the baseline calculation.
Example
- []Overbought Signal: MVI exceeds +8, indicating the asset may reverse from an overvalued position. []Oversold Signal: MVI drops below -8, suggesting the asset may recover from an undervalued state.
- Flat Market: MVI hovers near zero, indicating price consolidation.
开源脚本
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Follow Us At:
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Website: stockmaniacs.net/
Twitter: twitter.com/stockmaniacs
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Quora: quora.com/profile/Indrajit-Mukherjee-25
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Website: stockmaniacs.net/
Twitter: twitter.com/stockmaniacs
Facebook: facebook.com/stockmaniacs
Google+: plus.google.com/+stockmaniacs
Quora: quora.com/profile/Indrajit-Mukherjee-25
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
开源脚本
本着TradingView的真正精神,此脚本的创建者将其开源,以便交易者可以查看和验证其功能。向作者致敬!虽然您可以免费使用它,但请记住,重新发布代码必须遵守我们的网站规则。
Follow Us At:
----
Website: stockmaniacs.net/
Twitter: twitter.com/stockmaniacs
Facebook: facebook.com/stockmaniacs
Google+: plus.google.com/+stockmaniacs
Quora: quora.com/profile/Indrajit-Mukherjee-25
----
Website: stockmaniacs.net/
Twitter: twitter.com/stockmaniacs
Facebook: facebook.com/stockmaniacs
Google+: plus.google.com/+stockmaniacs
Quora: quora.com/profile/Indrajit-Mukherjee-25
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。