Z-Score Indicator

This is just a basic Z score indicator with some settings I find useful.

Z-score is a statistical measure that tells you how many standard deviations a data point is from the mean. It’s a way of understanding how unusual or extreme a current value is compared to a typical baseline.

This can be useful for:

1. Mean Reversion
Traders look for values with high or low Z-scores (e.g. > +2 or < –2) to identify when a price is far from the mean and might revert.

Example: A stock trading at a +2.5 Z-score relative to its moving average may be considered "overbought".

2. Pairs Trading
Z-scores help detect divergences between correlated instruments.

Example: If Stock A and Stock B usually trade in sync, and their spread has a Z-score of –2, that may signal a long A / short B setup.

3. Risk Management / Anomaly Detection
A high Z-score on volume, volatility, or other indicators can alert you to outlier conditions or potential breakouts.

4. Standardization
Z-scores allow different instruments or timeframes to be compared on the same scale, by normalizing the data.

In general:

0 At the mean
±1 Within 1 std dev (68% of data) — normal range
±2 Outside 95% of data — getting extreme
±3+ Very rare — possible reversion or breakout point