Please can you construct the Will Val Indicator. I have read that is a way to compare a value of any asset with gold.
I think you are talking about the Will Val indicator, this is a description found on internet:
Divide the price of any commodity by the price of Gold (this shows the spread relationship) and
multiply this by 100 to normalize. Then construct either a 2 week or 2 period exponential
average of this spread. Also construct a 22-week average or 22-period exponential of the spread.
It does not make much difference which mathematical formula you use. Finally, subtract the 2
period averages from the 22 period averages this produce the Pal.
Then, [(using this week’s Pal – lowest pal of the last 3 years) divided by (highest pal of the last 3 years – lowest pal of the last 3 years)] times 100
Unfortunately, this indicator is not possible to be made through ProBuilder, because there is no possibility to compare 2 securities with code… But, we can construct spread chart (with CTRL+R), so I assume there might something possible by constructing spread chart with any commodity divided by Gold price. Then on this spread chart, add the Will Val indicator.
This solution would need to make many spread charts to be build by yourself with the desired instrument (any commodity / Gold). Is that ok for you? (never made that before, but sounds like a good idea .. 🙂 )
I think that we can compare 2 securities in ProBuilder with the indicator Relative strength (Comparison).
I agree that the Will val indicator is something more complicated but can we modify the Relative strength (Comparison) indicator?
but can we modify the Relative strength (Comparison) indicator?
No, this is a built-in indicator, that’s not possible. So I created the indicator with the idea I came across in my previous post:
//PRC_WillVal-indicator | indicator
//24.11.2017
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//attempt to create the Williams Valuation Index on ProRealTime
//using spread chart (CTRL+R).
//firstly, create a spread chart with any commodity divided by gold
//then apply this indicator on a weekly timeframe of the resulted spread chart
norm = close*100
ema2weeks = average[2,1](norm) //10 days (2 weeks)
ema22weeks = average[22,1](norm) //110 days (22 weeks)
pal = ema2weeks-ema22weeks
h3 = max(h3,pal)
l3 = min(l3,pal)
if year<>year[1] then
count=count+1
if count=3 then
count=0
h3 = pal
l3 = pal
endif
endif
willval = ((pal-l3)/(h3-l3))*100
return willval coloured(0,0,255) style(line,2), 75 style(dottedline,1) as "level 75", 15 style(dottedline,1) as "level 15"
Instruction:
Using spread chart (CTRL+R). Firstly, create a spread chart with any commodity divided by gold, then apply this indicator on a weekly timeframe of the resulted spread chart.
I don’t know if the result can be considered as the correct WillVal indicator, so please consider its information with great precaution.
Example attached is CrudeOil / Gold valuation index.
