Gold/Silver Ratio with Supply ZonesGold/Silver Ratio with Supply Zones
Overview
Professional-grade indicator that tracks the Gold/Silver Ratio in real-time
Identifies potential market imbalances and rotation opportunities between precious metals
Features customizable threshold bands, moving averages, and automated trading signals
Built on Pine Script v6 for maximum stability and performance
Key Features
Real-Time Ratio Calculation : Automatically calculates Gold/Silver ratio using OANDA:XAUUSD and OANDA:XAGUSD price feeds
Dynamic Threshold Zones : Visual bands showing when silver or gold may be undervalued relative to each other
Moving Average Overlay : 20-period SMA to identify trend direction and momentum
Automated Buy Signals : Triangle markers appear when ratio reaches extreme levels
Live Information Table : Displays current ratio, moving average, individual metal prices, and market interpretation
Custom Alerts : Set notifications when ratio crosses your defined thresholds
Color-Coded Zones : Green zones indicate gold undervaluation, red zones indicate silver undervaluation
Trading Applications
Mean Reversion Strategy : Enter silver positions when ratio exceeds 90, enter gold when ratio falls below 70
Rotation Trading : Switch between metals based on relative value signals
Portfolio Rebalancing : Identify optimal times to adjust precious metals allocation
Divergence Analysis : Compare ratio behavior against individual metal price action
Default Settings
High Threshold : 90.0 (Silver undervalued zone)
Low Threshold : 70.0 (Gold undervalued zone)
Moving Average : 20-period SMA
Historical Reference : 80:1 ratio marked as long-term mean
How to Interpret
Ratio Above 90 : Silver is undervalued relative to gold - consider increasing silver exposure
Ratio Below 70 : Gold is undervalued relative to silver - consider increasing gold exposure
Ratio Between 70-90 : Neutral range - no clear relative value advantage
Rising Ratio : Gold outperforming silver
Falling Ratio : Silver outperforming gold
Signal Logic
Green Triangle (Bottom) : Ratio crosses above high threshold → Buy Silver Signal
Red Triangle (Top) : Ratio crosses below low threshold → Buy Gold Signal
MA Crossovers : Use 20-period MA for trend confirmation and entry timing
Visual Elements
Blue Line : Current gold/silver ratio value
Orange Line : 20-period moving average smoothing
Red Shaded Zone : Area where gold is relatively expensive
Green Shaded Zone : Area where gold is relatively cheap
Gray Dotted Line : Historical mean at 80:1
Info Table : Real-time statistics and market interpretation
Best Practices
Use on daily timeframe or higher for most reliable signals
Combine with volume analysis and individual metal technicals
Monitor Federal Reserve policy and USD strength as macro context
Consider industrial demand factors for silver (solar, EV, electronics)
Watch safe-haven flows during economic uncertainty for gold
Customization Options
Adjust threshold levels based on your preferred lookback period
Modify moving average length to suit your trading timeframe
Toggle bands on/off for cleaner chart visualization
Change data source tickers if using different brokers (FXCM, FOREXCOM, etc.)
Alert Conditions
Silver Undervalued Alert : Triggers when ratio crosses above your high threshold
Gold Undervalued Alert : Triggers when ratio crosses below your low threshold
Receive notifications via TradingView mobile app , email , or webhook
Who This Is For
Precious metals traders seeking relative value opportunities
Portfolio managers balancing gold and silver allocations
Macro traders using metals as inflation hedges
Swing traders capitalizing on mean reversion patterns
Long-term investors optimizing entry points
Important Notes
This indicator tracks price ratios , not physical supply data
COMEX warehouse stocks are not directly available in TradingView
Ratio analysis assumes historical mean reversion tendencies
Always combine with fundamental analysis and risk management
Past performance does not guarantee future results
Data Sources
Gold Price : OANDA:XAUUSD (spot gold in US dollars)
Silver Price : OANDA:XAGUSD (spot silver in US dollars)
Update Frequency : Real-time during market hours
Historical Data : Full TradingView historical coverage available
