The SPX Fair Value Bands is based on the Net Liquidity formula from Max Anderson.
When the price of the SPX (S&P 500) is outside of the upper band, it means the market is currently overvalued. Conversely, when the SPX is below the lower band, prices are thought to be oversold.
- SPX > Upper Band = Short
- SPX < Lower Band = Long
SPX Fair Value Bands for ThinkorSwim
# amalia
# 10/03/2022
# thinkScript OneNote
def a = If(IsNaN(Close("WALCL:FRED")), a[1], Close("WALCL:FRED"));
def b = If(IsNaN(Close("WTREGEN:FRED")), b[1], Close("WTREGEN:FRED"));
def c = If(IsNaN(Close("RRPONTSYD:FRED")), c[1], Close("RRPONTSYD:FRED"));
def SPX = If(IsNaN(Close("SPX")), SPX[1], Close("SPX"));
def SPXFairValueNetLiq = (A - (b + c)*1000)/1000/1.1-1625;
def SPXFairValue = If(!IsNaN(Close), SPXFairValueNetLiq, Double.NaN);
# Added by Melvin C.
# 10/19/2022
plot upperBand = SPXFairValue + 350;
plot lowerBand = SPXFairValue - 150;
Hey Melvin,
I copied and pasted the script to TOS and run SPX. Nothing comes up. What I am missing?
~A
View it on your Daily chart.
So it’s only used daily and not intraday. Thanks for clarifying!
Doesn’t work on any timeframe for me. Nada.