The valuation lines indicator will show, the average of the visible price on the chart.
You can also set 3 standard deviation (SD) lines of the average line of this indicator.
the formula of VL is= Average of the visible price of the chart.
- Field: The default field is ‘close’ this means the closing price will take to calculate the average of the chart price.
- Average Type: the default average type is ‘ mean’. The average will be the mean average. Also other types available like (mean, median, Harmonic types of average).
- Display Average: check this option to see the average line.
- Display 1 standard deviation (1σ): if you want deviation lines then check this option. This is the 1 standard deviation line.
- Display 2 standard deviation (2σ): this is the 2nd σ line.
- Display 3 standard deviation (3σ): this is the 3rd σ line.
- Average: this is the line color.
- 1standard Deviation (1σ): this is the 1st SD line color.
- 2 SD (2σ): this is the 2nd SD line color
- 3 σ: this is the 3rd σ line color setting.
How valuation lines indicator works
- this will display the average price line of the visible chart value.
- also, you can use standard deviation lines of the average line.
- 3 SD line you can use in this indicator.
Valuation Lines Indicator Trading Strategy
You use this average is as a support and resistance zone.
- when the average line is below the share price, then you can use this average line as a support level. if share price breaks the support line and moving down, then go for short sell.
- and when the average line is above the share price, then you can use this average line as a resistance line. if the share price move above the resistance zone. you can go for buying.
Use of the Deviation lines:
- you can use the SD line as a multiple support and resistance zone.
- above the average line is the bullish side and below the average line is bearish side. so you can use those lines as an entry and exit point.
Valuation Lines Indicator or VL is used to show you the average value of the visible chart price and also 3 Standard deviation lines will plot above and below the average line. and you can use those lines as a support and resistance zone.
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