My script

Implied Volatility vs Historical Volatility

**Uncheck Plot box**

• IV > HV = Overvalued
  
• IV = HV = Fair Value
  
• IV > HV = Undervalued
  

1. 1. Pair with IV Rank: Use IV vs HV to confirm the setup, but IV Rank (50+, 70+) tells you how “high” IV is relative to its own history.
   
2. 2. Timeframe: Use daily charts — IV is not meaningful on intraday timeframes.
   
3. 3. Avoid noise: Use a smoothed HV (e.g., 20-day) and don’t chase small crossovers — look for clear divergence.