Stochastic with Z-Score

21 ก.ค.

📊 Stochastic with Z-Score
This custom indicator enhances the classic Stochastic Oscillator by applying Z-Score normalization to both %K and %D lines, helping traders identify statistically significant overbought and oversold conditions based on historical behavior.

🔍 Key Features:
Z-Score Normalization of %K and %D:

Detects deviations from the mean using standard deviation, offering a more dynamic and statistically grounded way to interpret momentum.

Signal Confirmation Filters:

✅ Trend Filter using 200 EMA: Only trade in the direction of the prevailing trend.

✅ Volume Filter: Confirms signals only when volume exceeds the moving average, reducing noise.

Buy & Sell Signals:

📈 Buy: Triggered when the Z-score of %K crosses above a negative threshold, %D is still below that threshold, and the candle is bullish.

📉 Sell: Triggered when the Z-score of %K crosses below a positive threshold, %D is still above that threshold, and the candle is bearish.

Signals are further filtered by trend and volume if enabled.

Customizable Thresholds & Settings:

Control Z-score length, thresholds, Stochastic lengths, and filter settings.

Visual Enhancements:

Colored histogram based on Z-score levels.

Shaded background in overbought/oversold zones.

Clear “Buy” and “Sell” labels plotted directly on the chart.

Alerts Included:

Set alerts on confirmed buy and sell signals for real-time notifications.

📘 How to Use:
Use this indicator on any timeframe or asset.

Enable or disable trend and volume filters depending on your strategy.

Use signals in confluence with price action or other indicators.

Adjust Z-score thresholds for more or fewer signals based on your risk profile.

⚠️ Note: This is an indicator, not a strategy. Always test signals on historical data and in simulation before live trading.

26 ก.ค.

เอกสารเผยแพร่

v1.0 -26/07/26 : Updated histogram color and buy sell logic correction.