The valuation lines indicator will show, **visible chart’s average price**.

**Setting**

**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.**1 standard Deviation (1σ)**: this is the 1st standard Deviation line color.**2 Standard Deviation (2σ):**this is the 2nd standard Deviation line color**3 Standard Deviation(3σ):**this is the 3rd standard Deviation line color setting.

**The formula of valuation lines is**= **Average of the visible price of the char**t.

**How valuation lines indicator works**

- this will display the
**average price line of the visible chart value**. - also, you can use
**3****standard deviation lines**of the**valuation line**.

**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.

**Conclusion**:-

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.

*Read Related Post For More Information.