Mayer Multiple @ Current Price

Though this script is by me, the original idea comes from a podcast I heard where Trace Mayer talks about how he does crypto valuation. It is based on current price against the 200 day moving average. This indicator script will simply plot that value as a label overlayed on your trading view chart. Best long term results occur when acquiring BTC when the multiple is 2.4 or less. For more info, google "mayer multiple" This script/indicator is strictly for educational purposes. It is not exclusive to bitcoin.

To get the best look out of your charts I make the following changes.

1.Apply the indicator to your chart.

2. In the tools palette of trading view, when looking at a chart, click "Show Objects Tree" the icon displayed above the trash can.
In the objects tree panel, click the preferences icon for "Mayer Multiple @ Current Price"
Switch "scale" to "scale Left"


3. Then for your chart preferences (right click on chart background and select "Properties", and be sure the following are checked on the "Scales" tab
Left Axis
Right Axis
Indicator Last Value
Indicator Labels

Screenshots are not allowed in this view, so I can't post screenshots, but the view above is what it should look like when you are done.

For anyone who wants to see the code, here is the code of the script:
Use at will, and at your own risk.

//version=3
// Created By Timothy Luce, inspired by Trace Mayer's 200 Day SMA cryptocurrency valuation method
study("Mayer Multiple @ Current Price", overlay=true)
currentPrice = close
currentDay = security(tickerid, "D", sma(close, 200))

mayerMultiple = currentPrice/currentDay
plot(mayerMultiple, color=#00ffaa, transp=100)

If you want to change the color, change this line: #00ffaa