Z-Score Indicator

This script calculates the Z-Score to measure how many standard deviations the current price is from its mean (SMA). It is a classic tool for identifying statistical extremes and mean reversion opportunities.

Formula Z = (Close - Mean) / Standard Deviation

Visual Guide

Blue Line: The Z-Score value.

Red Dotted Lines (+/- 2): Statistical extremes.

> 2: Potentially Overbought.

< -2: Potentially Oversold.

Grey Dotted Line (0): The mean (fair value).

Settings

Lookback Period: Default is 30. Adjust to change sensitivity.