Will Val Indicator

• 11/02/2017 at 4:08 PM #51335
  nondas

  Please can you construct the Will Val Indicator. I have read that is a way to compare a value of any asset with gold.

  

  nondas

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  11/02/2017 at 5:20 PM #51343
  Nicolas

  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 .. 🙂 )

  

  Nicolas

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  11/02/2017 at 7:44 PM #51351
  nondas

  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?

  

  nondas

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  11/24/2017 at 11:31 AM #53833
  Nicolas

  nondas wrote:

  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"

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  //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.

  

  Nicolas

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