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Crypto Valuation Index - Larry Williams
This indicator is based on Larry Williams' Valuation Index, traditionally used to measure the value of commodities against gold and the dollar index.
I created this version specifically to measure the value of altcoins against Bitcoin or Ethereum (or Ethereum against Bitcoin).
Undervalued: When the reading is below 20, the altcoin is considered undervalued relative to BTC or ETH.
Overvalued: When the reading is above 80, the altcoin is considered overvalued relative to BTC or ETH.
For example, on the SOLUSDT chart, if the valuation reading is 18 against BTC or ETH, it means that SOL is undervalued compared to those assets.
Timeframe: The indicator is best used on the weekly chart, utilizing a 26/52-week period for calculations. While it can be applied on the daily chart, it is more accurate on the weekly timeframe.
This indicator helps you track relative valuations between altcoins and major cryptocurrencies, providing insights into potential market opportunities.
I created this version specifically to measure the value of altcoins against Bitcoin or Ethereum (or Ethereum against Bitcoin).
Undervalued: When the reading is below 20, the altcoin is considered undervalued relative to BTC or ETH.
Overvalued: When the reading is above 80, the altcoin is considered overvalued relative to BTC or ETH.
For example, on the SOLUSDT chart, if the valuation reading is 18 against BTC or ETH, it means that SOL is undervalued compared to those assets.
Timeframe: The indicator is best used on the weekly chart, utilizing a 26/52-week period for calculations. While it can be applied on the daily chart, it is more accurate on the weekly timeframe.
This indicator helps you track relative valuations between altcoins and major cryptocurrencies, providing insights into potential market opportunities.
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