OPEN-SOURCE SCRIPT
Z Score Overlay [BigBeluga]

🔵 OVERVIEW
A clean and effective Z-score overlay that visually tracks how far price deviates from its moving average. By standardizing price movements, this tool helps traders understand when price is statistically extended or compressed—up to ±4 standard deviations. The built-in scale and real-time bin markers offer immediate context on where price stands in relation to its recent mean.
🔵 CONCEPTS
🔵 FEATURES
🔵 HOW TO USE
🔵 CONCLUSION
Z Score Overlay [BigBeluga] transforms raw price action into a normalized statistical view, allowing traders to easily assess deviation strength and mean-reversion potential. The intuitive scale and color-coded display make it ideal for traders seeking objective, volatility-aware entries and exits.
A clean and effective Z-score overlay that visually tracks how far price deviates from its moving average. By standardizing price movements, this tool helps traders understand when price is statistically extended or compressed—up to ±4 standard deviations. The built-in scale and real-time bin markers offer immediate context on where price stands in relation to its recent mean.
🔵 CONCEPTS
- Z Score Calculation:
Z = (Close − SMA) ÷ Standard Deviation
This formula shows how many standard deviations the current price is from its mean. - Statistical Extremes:
• Z > +2 or Z < −2 suggests statistically significant deviation.
• Z near 0 implies price is close to its average. - Standardization of Price Behavior: Makes it easier to compare volatility and overextension across timeframes and assets.
🔵 FEATURES
- Colored Z Line: Gradient coloring based on how far price deviates—
• Red = oversold (−4),
• Green = overbought (+4),
• Yellow = neutral (~0). - Deviation Scale Bar: A vertical scale from −4 to +4 standard deviations plotted to the right of price.
- Active Z Score Bin: Highlights the current Z-score bin with a “◀” arrow
- Context Labels: Clear numeric labels for each Z-level from −4 to +4 along the side.
- Live Value Display: Shows exact Z-score on the active level.
- Non-intrusive Overlay: Can be applied directly to price chart without changing scaling behavior.
🔵 HOW TO USE
- Identify overbought/oversold areas based on +2 / −2 thresholds.
- Spot potential mean reversion trades when Z returns from extreme levels.
- Confirm strong trends when price remains consistently outside ±2.
- Use in multi-timeframe setups to compare strength across contexts.
🔵 CONCLUSION
Z Score Overlay [BigBeluga] transforms raw price action into a normalized statistical view, allowing traders to easily assess deviation strength and mean-reversion potential. The intuitive scale and color-coded display make it ideal for traders seeking objective, volatility-aware entries and exits.
Script de código aberto
No verdadeiro espirito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam entendê-lo e verificá-lo. Parabéns ao autor Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações e regida pelas Regras da Casa.
🔵Gain access to our powerful tools : bigbeluga.com
🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Script de código aberto
No verdadeiro espirito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam entendê-lo e verificá-lo. Parabéns ao autor Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações e regida pelas Regras da Casa.
🔵Gain access to our powerful tools : bigbeluga.com
🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.