Dynamic Power Z-Score [D-PZS]

Dynamic Power Z-Score [D-PZS]

This indicator is a momentum tool designed to identify market reversal points with high precision. It combines internal price strength ("Power") with statistical analysis to detect overbought and oversold conditions.

Methodology
The script calculates the internal strength of price action and smooths it using a Double Exponential Moving Average (DEMA). It features an adaptive mechanism that adjusts the calculation period based on market volatility. Finally, it uses a Z-Score formula to normalize the data and generate signals.

Signals (Reversed Color Logic)
This version uses specific colors to highlight market extremes:

- Green Circle (Above Bar): Indicates the market is Overbought (Z-Score > 2.0). Potential Short/Sell area.
- Red Circle (Below Bar): Indicates the market is Oversold (Z-Score < -2.0). Potential Long/Buy area.

No Repainting
This indicator does not repaint. Signals are confirmed only after the candle closes. Once a circle appears, it is permanent.

Protected Script Warning
This is a closed-source script protected by intellectual property rights. The underlying adaptive algorithm and code structure are proprietary. Reverse engineering or unauthorized distribution is prohibited.

Disclaimer: For educational purposes only.