Z-Score Indicator

What it does:

• Calculates the Z-Score: (Current Price - Average Price) / Standard Deviation
  
• Plots the Z-Score in a separate panel below your main chart.
  
• Allows you to customize the Lookback Period (default is 30 bars) to suit your trading style and the asset's characteristics. A shorter period is more sensitive, while a longer period provides a smoother output.
  

Key Features:

• Clear Z-Score Line: Visualizes the current Z-Score value.
  

Reference Lines:

• Zero Line (Gray, Dotted): Indicates the price is at its average for the lookback period.
  
• +2 Standard Deviations (Red, Dotted): Highlights when the price is significantly above its recent average. Often interpreted as potentially overbought.
  
• -2 Standard Deviations (Red, Dotted): Highlights when the price is significantly below its recent average. Often interpreted as potentially oversold.
  

How to use it:

• Look for Z-Score values moving towards or beyond the +2 or -2 standard deviation lines. These extremes can signal that the price has moved unusually far from its mean and might be due for a reversion or a pause.
  
• Use it in conjunction with other indicators and your overall market analysis to make more informed trading decisions.
  
• Experiment with the "Lookback Period" setting to find what works best for different assets and timeframes.