Indicator
RSI
Breakout
XAUUSD
Commodities
Supertrend
Crypto
BTCUSD
ZScore Reversion
"ZScore Reversion" logo
5.0
03/09/2025
95
Desktop
SinceĀ 03/10/2024
Sales
102
Free installs
14921
"ZScore Reversion" uploaded image"ZScore Reversion" uploaded image"ZScore Reversion" uploaded image

Pinescriptlabs Store indicators:                        šŸ¤–Pinescriptlabs  Store cBots : (cBot)
Gold & BTC BreakoutSession Pivots(new)

Auto-Trend Channel

PREMIUM SSL CHANNEL

ZigZag

 ICT Power of 3 
                                                   

SmartTrend Support &
Resistance
Lines
       

Fair Value Gap Sessions                
       

 BOS & CHOCH

RSI Trend Trigger

Channel Breakout System

Supertrend

Market Imbalance

Adaptive Trend Channel 

Dynamic
Market Structure
Analysis
of
Turning Points

Order Block

Fibonacci
Linear
Regression
Multi-timeframe

Volume POC Heatmap

Dynamic RSI

Momentum Fair Value Gap

Market Flow Projection

Dynamic Trend Gradient

Multi-Level
Candle Bias
Tracker

Zig-Zag Extremity Tracker

Reactive Moving Average

Auto
Support and
Resistance
Trend
Lines

All
Support and
Resistance
Levels

Leverage Liquidation Map

Zones Supply Demand

Dynamic Range Momentum

 

The Z-Score transforms price into a "standard
deviation" scale,
showing how far each candle’s close (or open, high, low) deviates from its
historical mean. With an intuitive visual, it helps identify overbought/oversold
conditions and
high-probability reversal zones! šŸ”„

1ļøāƒ£ What Does It Do?

šŸ”¹ Standardizes Price: Converts the absolute closing value into a Z-Score—how many standard deviations it is from the mean
of the last N bars.
šŸ”¹ Highlights
Statistical Extremes: Values
near Ā±1, ±2, or ±3 indicate rarity in price movement:

  • ±1 SD (ā‰ˆ 68% probability between –1 and 1)
  • ±2 SD (ā‰ˆ 95% probability between –2 and 2)
  • ±3 SD (ā‰ˆ 99.7% probability between –3 and 3)
    šŸ”¹ Aids
    in Mean Reversion Trading:
    When Z-Score exceeds Ā±2 or ±3, the market is in an extreme
    zone and tends to
    revert toward the mean (zero).
    šŸ”¹ Clear
    Visualization: Using histograms (or special candles), a moving average
    line, and colored zones, you can instantly see if price is behaving "normally" or is a statistical
    outlier.

2ļøāƒ£ How Does It Work?

šŸ“ Calculation of Mean & Standard Deviation

  • A lookback
    period (e.g., 99
    bars) is used.
  • The mean and standard
    deviation (SD) of
    closing prices are calculated.
  • Higher SD = More volatility in price movements.

🧮 Z-Score Formula

Z=Current Closeāˆ’Historical MeanStandard DeviationZ=Standard DeviationCurrent Closeāˆ’Historical Mean​

  • Positive Z ā†’ Close above the mean.
  • Negative Z ā†’ Close below the mean.

šŸ“Š Z-Table Probabilities

  • Highlights the
    current Z-Score’s column to show how rare/extreme the price is!

3ļøāƒ£ How to Use It in Trading

āœ… Mean Reversion: Look for Z > +2 or Z < –2 to trade reversals (sell overbought
extremes, buy oversold extremes).
āœ… Trend Confirmation: A sustained Z
> 0 + rising moving average signals
strength; Z < 0 + falling MA suggests weakness.
āœ… Risk Management: Near Ā±1 SD, expect normal moves; near Ā±3
SD, adjust stops &
position sizes carefully.
āœ… Entry Timing: Combine extreme Z-Scores with support/resistance
levels for precise
entries.

4ļøāƒ£ Pros & Considerations

āœ”ļø Advantages

  • Statistical edge in spotting extreme price conditions.
  • Multiple display modes (histogram, candles, bands, probability
    table).
  • Easy customization (length, colors, chart type).

āš ļø Considerations:

  • In strong
    trends, price can stay
    "extreme" for long periods without reversing.
  • Assumes a normal
    distribution—may not
    work well in highly volatile/skewed markets.
  • Best used in stable
    volatility environments.

 

More from this author
Indicator
RSI
Breakout
XAUUSD
+6
ZigZag
ZigZag filters noise, spots trends, patterns, pivots, aiding analysis, trade management, and confirmations. šŸ“‰šŸ“ˆ
Indicator
RSI
Breakout
XAUUSD
+6
Order Block
Identify bullish and bearish Order Blocks to spot key support/resistance levels and potential trend reversals! šŸ“ˆšŸ”„
Indicator
RSI
Breakout
XAUUSD
+5
Auto-Trend Channel
Adaptive trend channel using linear regression and Pearson correlation for dynamic support, resistance, and trends.
Indicator
RSI
XAUUSD
Breakout
+5
BOS & CHOCH
Market structural patterns , specifically the concepts of Change of Character (ChoCH) šŸ”„ and Break of Structure (BoS) šŸ’„
Indicator
RSI
Breakout
XAUUSD
+5
Zones Supply Demand
šŸ“ŠZones Supply & Demand: Identifies key price levels with high volume concentration, marking Supply/Demand Zones & Marke
Indicator
RSI
Breakout
XAUUSD
+5
Supertrend
šŸ’¹ Define a price channel šŸ“ˆ and determine trend direction (bullish 🟢 or bearish šŸ”“).
Indicator
RSI
Breakout
XAUUSD
+6
Volume POC Heatmap
šŸ“Š Shows volume by price levels, highlights POC, and key zones. Identifies dynamic support/resistance and imbalances.
Indicator
RSI
Breakout
Supertrend
All Support and Resistance Levels
"Identify key market zones and visualize support/resistance from multiple timeframes on a single chart.
Indicator
RSI
Breakout
XAUUSD
+6
Fair Value Gap Sessions
identify and highlight temporary market inefficiencies known as "fair value gaps" 🚨 within specific trading Sessions.
Indicator
RSI
Breakout
XAUUSD
+4
Dynamic Market Structure Analysis of Turning Points
Identify market structure effortlessly with swing highs, lows, CHoCH, and BOS levels for smart trading decisions! šŸ“ŠšŸ”"
Indicator
Indices
RSI
XAUUSD
+7
RSI Divergence
Detects bullish and bearish divergences
Indicator
RSI
Breakout
Supertrend
Trend Heikin Multi MA
šŸš€ TrendHeikinMultiMA: Advanced trend detection using Heikin-Ashi smoothing & MAs! Eliminates noise, confirms real trend
Indicator
RSI
Breakout
XAUUSD
+4
Multi-Level Candle Bias Tracker
Price direction by calculating the probability of reaching new highs/lows. Shows levels & statsšŸ“ˆ
Indicator
RSI
Breakout
Supertrend
Leverage Liquidation Map
šŸ“Š Liquidation Map: Potential areas where highly leveraged investors might face liquidations.
Indicator
RSI
Breakout
Supertrend
Market Trend OB
Price action to detect when the market changes trend (MSB) and defines, order blocks , ZigZag etc.šŸ“Š
Advanced Market Structure Bos,Choch,SwinLevels, Order Blog
Advanced price action toolĀ that combines multiple technical analysis concepts
Indicator
RSI
Breakout
Supertrend
+3
Fibonacci Linear Regression Multi-timeframe
Combining Fibonacci levels and regression to analyze multidimensional market trends across multiple timeframesĀ”
Indicator
RSI
Breakout
Supertrend
Zig-Zag Extremity Tracker
Dynamically adjusts regression channels based on ZigZag extremes, resetting when price breaks bands to track real trends
You may also like
Indicator
Indices
Forex
EURUSD
+1
DXY w HMA
DXY HMA Indicator
MTF Candles
Multi Timeframe Candle drawing. Draw Any candles from any timeframe on your chart :-)
Indicator
NAS100
NZDUSD
Martingale
+26
ICT Killzones
ICT Killzones plots Asian, London & New York trading sessions on your cTrader charts with clear zones & labels.
VegaXLR - Analysis Tools Alerts
Enhance your trading with customizable alerts and dynamic visual tools for trendlines, Fibonacci levels, and more.
VegaXLR - cTrader Multi-Timeframe Pivot Pro
Customizable multi-timeframe pivot point indicator for cTrader with alerts, Fibonacci, CPR, and more!
Indicator
Indices
XAUUSD
Stocks
+5
cAlgoBuddy - Ultimate Candlestick Patterns
The ultimate candlestick suite is here to help you detect most of the candlestick patters that exist today.
TraderMaxBBflterXDemo-
TraderMax BB Filter X (DEMO) for cTrader 🧪 Limited-Time Demo Version (24h) TraderMax BB Filter X (DEMO) is a precision
Indicator
RSI
Indices
Stocks
+3
FiboTrend-Pro V2
New version of one of my favorites includes Fibonacci and moving average convergence divergence lines
Indicator
Indices
Forex
POC session line
Displays the POC line for previous sessions in an easy to see manner.
SmartBot-Tenkan & ATR Indicator
The Tenkan-ATR Indicator is a powerful and innovative indicator for Traders. SALE OFF!!!
Indicator
Indices
RSI
Stocks
+3
Advanced RSI Indicator
Advanced RSI Indicator with multi-MA smoothing, Bollinger Bands, divergence detection, and fill zones for cTrader.
Indicator
RSI
Breakout
XAUUSD
+13
Fear & Greed Index
Fear & Greed Index: 4 configurable components (momentum, volatility, strength, pattern) with 6 calculation methods each
IR Slowing Moving
Add Slowing to IR Moving Average.
FlexVWAPBand
Ultra-Flexible VWAP Indicator with Advanced Customization
Indicator
RSI
Breakout
XAUUSD
+6
Multi-Asset Performance Matrix
Visual tool tracking financial assets' % performance across timeframes, highlighting trends with color-coded insights.