OPEN-SOURCE SCRIPT
Z-Score Distortion Lab
Name: Z-Score Distortion Lab 🔬
Description:
The Anatomy of Market Volatility
Most indicators focus on price direction, but Z-Score Distortion Lab dives deeper into the "Statistical Health" of the market. This tool analyzes the 3rd and 4th statistical moments—Skewness and Excess Kurtosis—to identify when price action is deviating from a normal distribution.
Key Clinical Features:
Skewness (Neon Line): Measures the asymmetry of price distribution. A high positive/negative skew indicates a strong directional bias or "Distortion" that often precedes trend exhaustion or sharp reversals.
Excess Kurtosis (Aqua Line): Monitors "Fat-Tail Risk." When Kurtosis spikes, it signals extreme market conditions and high volatility where outliers (black swan events) are more likely to occur.
Visual Diagnostics: Equipped with "Risk Triangles" and "Bias Arrows" to highlight statistical anomalies in real-time.
How to use in your "Lab":
Risk Monitoring: Use the Kurtosis threshold to identify high-risk environments where standard strategies might fail.
Bias Detection: Use Skewness arrows to confirm the underlying strength of a move.
Customizable Thresholds: Fully adjustable inputs to fit your specific timeframe and asset class.
Disclaimer:
This tool is for statistical analysis and educational purposes only. It does not provide financial advice or guaranteed trade signals. Always use proper risk management.
Description:
The Anatomy of Market Volatility
Most indicators focus on price direction, but Z-Score Distortion Lab dives deeper into the "Statistical Health" of the market. This tool analyzes the 3rd and 4th statistical moments—Skewness and Excess Kurtosis—to identify when price action is deviating from a normal distribution.
Key Clinical Features:
Skewness (Neon Line): Measures the asymmetry of price distribution. A high positive/negative skew indicates a strong directional bias or "Distortion" that often precedes trend exhaustion or sharp reversals.
Excess Kurtosis (Aqua Line): Monitors "Fat-Tail Risk." When Kurtosis spikes, it signals extreme market conditions and high volatility where outliers (black swan events) are more likely to occur.
Visual Diagnostics: Equipped with "Risk Triangles" and "Bias Arrows" to highlight statistical anomalies in real-time.
How to use in your "Lab":
Risk Monitoring: Use the Kurtosis threshold to identify high-risk environments where standard strategies might fail.
Bias Detection: Use Skewness arrows to confirm the underlying strength of a move.
Customizable Thresholds: Fully adjustable inputs to fit your specific timeframe and asset class.
Disclaimer:
This tool is for statistical analysis and educational purposes only. It does not provide financial advice or guaranteed trade signals. Always use proper risk management.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.