Universal Valuation Predator | QuantLapse

Universal Valuation Predator

A statistically normalized valuation and mean-reversion engine for all markets and timeframes.

Overview

Universal Valuation Predator is a statistically normalized valuation framework designed to identify relative overbought and oversold conditions across any asset class, any timeframe, and any market regime.

Rather than relying on fixed oscillator levels or asset-specific assumptions, this script expresses price behavior through Z-scores, allowing all signals to be evaluated as deviations from their own historical norms.

This approach enables consistent valuation analysis across:

• Cryptocurrencies
  
• Equities
  
• Indices
  
• Forex
  
• Commodities
  

Core Philosophy

Market behavior varies significantly between instruments and regimes. Absolute indicator thresholds (e.g., RSI = 70) are not inherently comparable across assets or volatility environments.

This script addresses that limitation by:

• Calculating each component independently
  
• Normalizing each component using its own rolling mean and standard deviation
  
• Expressing all outputs as dimensionless Z-scores
  

The result is a universal valuation model that adapts automatically to changing volatility and structure.

Multi-Factor Z-Score Engine

The primary valuation signal is derived from the average Z-score of multiple independent analytical components, including:

• Relative Strength Index (RSI)
  
• Chande Momentum Oscillator (CMO)
  
• Price Gravity Oscillator (PGO)
  
• Regression Oscillator (ROSC)
  
• Bollinger Band Percent (%B)
  
• True Strength Index (TSI)
  
• Kairi Relative Index (KRI)
  

Each component is normalized before aggregation, reducing single-indicator bias and increasing signal robustness.

Overbought & Oversold Classification

Valuation regimes are expressed in standard deviations from equilibrium:

• +2σ to +3σ → Overbought
  
• +3σ to +4σ → Strongly Overbought
  
• > +4σ → Extremely Overvalued
  

• −2σ to −3σ → Oversold
  
• −3σ to −4σ → Strongly Oversold
  
• < −4σ → Extremely Undervalued
  

Optional labels highlight the first transition into each valuation regime, focusing attention on statistically significant extremes rather than repeated conditions.

Rapid Valuation Mode (Fast Engine)

An optional Rapid Valuation Engine is included for faster market conditions and lower timeframes.

This engine blends Z-score–normalized versions of:

• Rapid RSI (RRSI)
  
• Relative Momentum Oscillator (RMO)
  
• Intraday Momentum Oscillator (IMI)
  
• Coppock Curve–based momentum
  

All components are standardized and averaged, producing a responsive valuation signal while maintaining statistical consistency.

Visual Design & Interpretation

• Gradient color mapping reflects valuation intensity
  
• Background shading reinforces regime context
  
• Candle coloring mirrors valuation state directly on price
  
• Neutral zones represent statistical equilibrium, not trade signals
  

This indicator does not predict price direction. It provides context for where price resides relative to its historical behavior.

Intended Use

This script is designed as a valuation and contextual analysis tool, not a standalone trading system.

It is best used alongside:

• Market structure analysis
  
• Trend identification
  
• Volume or liquidity tools
  
• Risk management frameworks
  

Z-score extremes indicate statistical rarity, not certainty.

Important Notes

• No future performance is implied or guaranteed
  
• This script does not constitute financial advice
  
• All calculations are based solely on historical price data
  
• Users are responsible for validating settings and interpretations
  

Summary

Universal Valuation Predator delivers a statistically grounded, asset-agnostic framework for identifying relative market extremes using normalized Z-scores. By combining multiple independent indicators into a unified valuation model, it provides a consistent and adaptive method for analyzing overextension and mean-reversion potential across all markets.