Z-Score Regime Detector

The Z-Score Regime Detector is a statistical market regime indicator that helps identify bullish and bearish market conditions based on normalized momentum of three core metrics:

- Price (Close)
- Volume
- Market Capitalization (via CRYPTOCAP:TOTAL)

Each metric is standardized using the Z-score over a user-defined period, allowing comparison of relative extremes across time. This removes raw value biases and reveals underlying momentum structure.

📊 How it Works

- Z-Score: Measures how far a current value deviates from its average in terms of standard deviations.
- A Bullish Regime is identified when both price and market cap Z-scores are above the volume Z-score.
- A Bearish Regime occurs when price and market cap Z-scores fall below volume Z-score.

Bias Signal:
- Bullish Bias = Price Z-score > Market Cap Z-score
- Bearish Bias = Market Cap Z-score > Price Z-score

This provides a statistically consistent framework to assess whether the market is flowing with strength or stress.

✅ Why This Might Be Effective

- Normalizing the data via Z-scores allows comparison of diverse metrics on a common scale.
- Using market cap offers broader insight than price alone, especially for crypto.
- Volume as a reference threshold helps identify accumulation/distribution regimes.
- Simple regime logic makes it suitable for trend confirmation, filtering, or position biasing in systems.

⚠️ Disclaimer

This script is for educational purposes only and should not be considered financial advice. Always perform your own research and risk management. Past performance is not indicative of future results. Use at your own discretion.