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Mid-term Valuation Indicator | MiesOnCharts

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Medium-Term Valuation Indicator

This medium-term valuation indicator integrates multiple valuation metrics to assist investors in identifying oversold and overbought market conditions with greater precision.

How it works:
This indicator uses an average of multiple valuation indicators like technical mean reversion, sentiment and on-chain indicators. Its core innovation is an adaptive z-score aggregation that normalizes these diverse inputs (e.g., RSI for mean reversion or NUPL for on-chain sentiment) into a unified score, minimizing noise from isolated metrics and providing a more reliable valuation snapshot than traditional single-indicator tools.

All included indicators have individual flexible metrics, allowing users to customize them as needed. Additionally, the script uses color-coding based on the aggregation of z-scores, which aids in visualizing whether the market is overvalued or undervalued.

How to Interpret:
The indicator employs adaptive standard deviation bands to define extreme market zones. The red band signals a strongly overbought condition, while the green band indicates a significantly oversold condition.

How to Apply:
Investors can leverage these extreme levels as strategic points for taking profits or implementing dollar-cost averaging (DCA) strategies, optimizing entry and exit decisions in the market.


Disclaimer: NOT Financial advice. Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.

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