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Chartmill Value Indicator

The Chartmill value indicator (CVI) is a short-term oscillator which denotes overbought and oversold markets. Just as other oscillators such as the RSI or MACD try to define buying and selling zones, so too does the CVI but in a slightly different way. The RSI is a range-bound oscillator which can remain in overbought territory for quite a while if the market is in a strong uptrend. The MACD is a smoothing oscillator, as it uses moving averages to smooth out the noise and suffers from the same lagging issue of moving averages on price charts. The CVI attempts to find value in the stock whereby a trader will buy the stock when price aligns with their notion of value, since perceived value will vary from trader to trader. After all, isn’t that what makes the market?

Learn how to use the Chartmill Value Indicator using $FB charts in examples HERE >>>>