z_score

2022年7月22日

Stand-alone Z-score indicator for volatile currency pairs, showing STRONG BUY, BUY, SELL, STRONG SELL zones.

The use can define their own "window" or moving average length, which will affect the frequency and magnitude of trades.
Higher windows reduce trade size but increase frequency and vice versa.
The suggested window values are intended for the daily time-frame. They are selected to maximise returns.

• ETHBTC . 64 days.
  
• SOLBTC . 40 days.
  

Trading decisions must be confirmed by multiple indicators and other factors.

2022年7月22日

版本注释

Stand-alone Z-score indicator for volatile currency pairs, showing STRONG BUY, BUY, SELL, STRONG SELL zones.

Based on mean reversion, a theory that after a swing in price the price will tend back to the mean. This offers some ability to predict future trends.
The formula for calculating a z-score is is z = (x-μ)/σ, where x is the pair price, μ is the mean for a population, and σ is the population standard deviation.

The user can define their own value for the "window" or population, which is the number of preceding days to evaluate. This value will affect the frequency and magnitude of trades with higher "window" values reducing the frequency of reversions but increasing the magnitude.
The suggested values for "window" below are intended for the daily time-frame. They are selected to maximise returns.

• ETHBTC . 64 days.
  
• SOLBTC . 40 days.
  
• SOLETH. 30 days.
  

Trading decisions must be confirmed by multiple indicators and other factors.

2022年7月27日

版本注释

Removed email address from script's pine code. Apologies!