Uptrick: Universal Z-Score Valuation

Overview
The Uptrick: Universal Z-Score Valuation is a tool designed to help traders spot when the market might be overreacting—whether that’s on the upside or the downside. It does this by combining the Z-scores of multiple key indicators into a single average, letting you see how far the current market conditions have stretched away from “normal.” This average is shown as a smooth line, supported by color-coded visuals, signal markers, optional background highlights, and a live breakdown table that shows the contribution of each indicator in real time. The focus here is on spotting potential reversals, not following trends. The indicator works well across all timeframes and asset classes, from fast intraday charts like the 1-minute and 5-minute, to higher timeframes such as the 4-hour, daily, or even weekly. Its universal design makes it suitable for any market — whether you're trading crypto, stocks, forex, or commodities.

Introduction
To understand what this indicator does, let’s start with the idea of a Z-score. In simple terms, a Z-score tells you how far a number is from the average of its recent history, measured in standard deviations. If the price of an asset is two standard deviations above its mean, that means it’s statistically “rare” or extended. That doesn’t guarantee a reversal—but it suggests the move is unusual enough to pay attention.
This concept isn’t new, but what this indicator does differently is apply the Z-score to a wide set of market signals—not just price. It looks at momentum, volatility, volume, risk-adjusted performance, and even institutional price baselines. Each of those indicators is normalized using Z-scores, and then they’re combined into one average. This gives you a single, easy-to-read line that summarizes whether the entire market is behaving abnormally. Instead of reacting to one indicator, you’re reacting to a statistically balanced blend.

Purpose
The goal of this script is to catch turning points—places where the market may be topping out or bottoming after becoming overstretched. It’s built for traders who want to fade sharp moves rather than follow trends. Think of moments when price explodes upward and starts pulling away from every moving average, volume spikes, volatility rises, and RSI shoots up. This tool is meant to spot those situations—not just when price is stretched, but when multiple different indicators agree that something is overdone.

Originality and Uniqueness
Most indicators that use Z-scores only apply them to one thing—price, RSI, or maybe Bollinger Bands. This one is different because it treats each indicator as a contributor to the full picture. You decide which ones to include, and the script averages them out. This makes the tool flexible but also deeply informative.

It doesn’t rely on complex or hidden math. It uses basic Z-score formulas, applies them to well-known indicators, and shows you the result. What makes it unique is the way it brings those signals together—statistically, visually, and interactively—so you can see what’s happening in the moment with full transparency. It’s not trying to be flashy or predictive. It’s just showing you when things have gone too far, too fast.

Inputs and Parameters
This indicator includes a wide range of configurable inputs, allowing users to customize which components are included in the Z-score average, how each indicator is calculated, and how results are displayed visually. Below is a detailed explanation of each input:

General Settings

• Z-Score Lookback (default: 100): Number of bars used to calculate the mean and standard deviation for Z-score normalization. Larger values smooth the Z-scores; smaller values make them more reactive.
  
• Bar Color Mode (default: None): Determines how bars are visually colored. Options include: None: No candle coloring applied. - Heat: Smooth gradient based on the Z-score value. - Latest Signal: Applies a solid color based on the most recent buy or sell signal
  

Boolean - General

• Plot Universal Valuation Line (default: true): If enabled, plots the average Z-score (zAvg) line in the separate pane.
  
• Show Signals (default: true): Displays labels ("𝓤𝓹" for buy, "𝓓𝓸𝔀𝓷" for sell) when zAvg crosses above or below user-defined thresholds.
  
• Show Z-Score Table (default: true): Displays a live table listing each enabled indicator's Z-score and the current average.
  

Select Indicators
These toggles enable or disable each indicator from contributing to the Z-score average:

• Use VWAP Z-Score (default: true)
  
• Use Sortino Z-Score (default: true)
  
• Use ROC Z-Score (default: true)
  
• Use Price Z-Score (default: true)
  
• Use MACD Histogram Z-Score (default: false)
  
• Use Bollinger %B Z-Score (default: false)
  
• Use Stochastic K Z-Score (default: false)
  
• Use Volume Z-Score (default: false)
  
• Use ATR Z-Score (default: false)
  
• Use RSI Z-Score (default: false)
  
• Use Omega Z-Score (default: true)
  
• Use Sharpe Z-Score (default: true)
  

Only enabled indicators are included in the average. This modular design allows traders to tailor the signal mix to their preferences.

Indicator Lengths
These inputs control how each individual indicator is calculated:

• MACD Fast Length (default: 12)
  
• MACD Slow Length (default: 26)
  
• MACD Signal Length (default: 9)
  
• Bollinger Basis Length (default: 20): Used to compute the Bollinger %B.
  
• Bollinger Deviation Multiplier (default: 2.0): Standard deviation multiplier for the Bollinger Band calculation.
  
• Stochastic Length (default: 14)
  
• ATR Length (default: 14)
  
• RSI Length (default: 14)
  
• ROC Length (default: 10)
  

Zones
These thresholds define key signal levels for the Z-score average:

• Neutral Line Level (default: 0): Baseline for the average Z-score.
  
• Bullish Zone Level (default: -1): Optional intermediate zone suggesting early bullish conditions.
  
• Bearish Zone Level (default: 1): Optional intermediate zone suggesting early bearish conditions.
  
• Z = +2 Line Level (default: 2): Primary threshold for bearish signals.
  
• Z = +3 Line Level (default: 3): Extreme bearish warning level.
  
• Z = -2 Line Level (default: -2): Primary threshold for bullish signals.
  
• Z = -3 Line Level (default: -3): Extreme bullish warning level.
  
• These zone levels are used to generate signals, fill background shading, and draw horizontal lines for visual reference.
  

Why These Indicators Were Merged
Each indicator in this script was chosen for a specific reason. They all measure something different but complementary.

• The VWAP Z-score helps you see when price has moved far from the volume-weighted average, often used by institutions.
  
• Sortino Ratio Z-score focuses only on downside risk, which is often more relevant to traders than overall volatility.
  
• ROC Z-score shows how fast price is changing—strong momentum may burn out quickly.
  
• Price Z-score is the raw measure of how far current price has moved from its mean.
  
• RSI Z-score shows whether momentum itself is stretched.
  
• MACD Histogram Z-score captures shifts in trend strength and acceleration.
  
• %B (Bollinger) Z-score indicates how close price is to the upper or lower volatility envelope.
  
• Stochastic K Z-score gives a sense of how high or low price is relative to its recent range.
  
• Volume Z-score shows when trading activity is unusually high or low.
  
• ATR Z-score gives a read on volatility, showing if price movement is expanding or contracting.
  
• Sharpe Z-score measures reward-to-risk performance, useful for evaluating trend quality.
  
• Omega Z-score looks at the ratio of good returns to bad ones, offering a more nuanced view of efficiency.
  

By normalizing each of these using Z-scores and averaging only the ones you turn on, the script creates a flexible, balanced view of the market’s statistical stretch.

Calculations
The core formula is the standard Z-score:
Z = (current value - average) / standard deviation

Every indicator uses this formula after it’s calculated using your chosen settings. For example, RSI is first calculated as usual, then its Z-score is calculated over your selected lookback period. The script does this for every indicator you enable. Then it averages those Z-scores together to create a single value: zAvg. That value is plotted and used to generate visual cues, signals, table values, background color changes, and candle coloring.

Sequence

• Each selected indicator is calculated using your custom input lengths.
  
• The Z-score of each indicator is computed using the shared lookback period.
  
• All active Z-scores are added up and averaged.
  
• The resulting zAvg value is plotted as a line.
  
• Signal conditions check if zAvg crosses user-defined thresholds (default: ±2).
  
• If enabled, the script plots buy/sell signal labels at those crossover points.
  
• The candle color is updated using your selected mode (heatmap or signal-based).
  
• If extreme Z-scores are reached, background highlighting is applied.
  
• A live table updates with each individual Z-score so you know what’s driving the signal.
  

Features
This script isn’t just about stats—it’s about making them usable in real time. Every feature has a clear reason to exist, and they’re all there to give you a better read on market conditions.

1. Universal Z-Score Line
This is your primary reference. It reflects the average Z-score across all selected indicators. The line updates live and is color-coded to show how far it is from neutral. The further it gets from 0, the brighter the color becomes—cyan for deeply oversold conditions, magenta for overbought. This gives you instant feedback on how statistically “hot” or “cold” the market is, without needing to read any numbers.



2. Signal Labels (“𝓤𝓹” and “𝓓𝓸𝔀𝓷”)
When the average Z-score drops below your lower bound, you’ll see a "𝓤𝓹" label below the bar, suggesting potential bullish reversal conditions. When it rises above the upper bound, a "𝓓𝓸𝔀𝓷" label is shown above the bar—indicating possible bearish exhaustion. These labels are visually clear and minimal so they don’t clutter your chart. They're based on clear crossover logic and do not repaint.

3. Real-Time Z-Score Table
The table shows each indicator's individual Z-score and the final average. It updates every bar, giving you a transparent breakdown of what’s happening under the hood. If the market is showing an extreme average score, this table helps you pinpoint which indicators are contributing the most—so you’re not just guessing where the pressure is coming from.


4. Bar Coloring Modes
You can choose from three modes:

• None: Keeps your candles clean and untouched.
  
• Heat: Applies a smooth gradient color based on Z-score intensity. As conditions become more extreme, candle color transitions from neutral to either cyan (bullish pressure) or magenta (bearish pressure).
  
• Latest Signal: Applies hard coloring based on the most recent signal—greenish for a buy, purple for a sell. This mode is great for tracking market state at a glance without relying on a gradient.
  

Every part of the candle is colored—body, wick, and border—for full visibility.

5. Background Highlighting
When zAvg enters an extreme zone (typically above +2 or below -2), the background shifts color to reflect the market’s intensity. These changes aren’t overwhelming—they’re light fills that act as ambient warnings, helping you stay aware of when price might be reaching a tipping point.

6. Customizable Zone Lines and Fills
You can define what counts as neutral, overbought, and oversold using manual inputs. Horizontal lines show your thresholds, and shaded regions highlight the most extreme zones (+2 to +3 and -2 to -3). These lines give you visual structure to understand where price currently stands in relation to your personal reversal model.

7. Modular Indicator Control
You don’t have to use all the indicators. You can enable or disable any of the 12 with a simple checkbox. This means you can build your own “blend” of market context—maybe you only care about RSI, price, and volume. Or maybe you want everything on. The script adapts accordingly, only averaging what you select.

8. Fully Customizable Sensitivity and Lengths
You can adjust the Z-score lookback length globally (default 100), and tweak individual indicator lengths separately. This lets you tune the indicator’s responsiveness to suit your trading style—slower for longer swings, faster for scalping.

9. Clean Integration with Any Chart Layout
All visual elements are designed to be informative without taking over your chart. The coloring is soft but clear, the labels are readable without being huge, and you can turn off any feature you don’t need. The indicator can work as a full dashboard or as a simple line with a couple of alerts—it’s up to you.

10. Precise, Real-Time Signal Logic
The crossover logic for signals is exact and only fires when the Z-score moves across your defined boundary. No estimation, no delay. Everything is calculated based on current and previous bar data, and nothing repaints or back-adjusts.

Conclusion
The Universal Z-Score Valuation indicator is a tool for traders who want a clear, unbiased way to detect overextension. Instead of relying on a single signal, you get a composite of several market perspectives—momentum, volatility, volume, and more—all standardized into a single view. The script gives you the freedom to control the logic, the visuals, and the components. Whether you use it as a confirmation tool or a primary signal source, it’s designed to give you clarity when markets become chaotic.

Disclaimer

This indicator is for research and educational use only. It does not constitute financial advice or guarantees of performance. All trading involves risk, and users should test any strategy thoroughly before applying it to live markets. Use this tool at your own discretion.