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Z-Score Indicator

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What it does:
  • Calculates the Z-Score: (Current Price - Average Price) / Standard Deviation
  • Plots the Z-Score in a separate panel below your main chart.
  • Allows you to customize the Lookback Period (default is 30 bars) to suit your trading style and the asset's characteristics. A shorter period is more sensitive, while a longer period provides a smoother output.

Key Features:
  • Clear Z-Score Line: Visualizes the current Z-Score value.

Reference Lines:
  • Zero Line (Gray, Dotted): Indicates the price is at its average for the lookback period.
  • +2 Standard Deviations (Red, Dotted): Highlights when the price is significantly above its recent average. Often interpreted as potentially overbought.
  • -2 Standard Deviations (Red, Dotted): Highlights when the price is significantly below its recent average. Often interpreted as potentially oversold.

How to use it:
  • Look for Z-Score values moving towards or beyond the +2 or -2 standard deviation lines. These extremes can signal that the price has moved unusually far from its mean and might be due for a reversion or a pause.
  • Use it in conjunction with other indicators and your overall market analysis to make more informed trading decisions.
  • Experiment with the "Lookback Period" setting to find what works best for different assets and timeframes.

Declinazione di responsabilità

Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.