Smoothed ROC Z-Score with Table

3 hari lalu

Smoothed ROC Z-Score with Table

This indicator calculates the Rate of Change (ROC) of a chosen price source and transforms it into a smoothed Z-Score oscillator, allowing you to identify market cycle tops and bottoms with reduced noise.

How it works:

The ROC is calculated over a user-defined length.

A moving average and standard deviation over a separate window are used to standardize the ROC into a Z-Score.

This Z-Score is further smoothed using an exponential moving average (EMA) to filter noise and highlight clearer cycle signals.

The smoothed Z-Score oscillates around zero, with upper and lower bands defined by user inputs (default ±2 standard deviations).

When the Z-Score reaches or exceeds ±3 (customizable), the value shown in the table is clamped at ±2 for clearer interpretation.

The indicator plots the smoothed Z-Score line with zero and band lines, and displays a colored Z-Score table on the right for quick reference.

How to read it:

Values near zero indicate neutral momentum.

Rising Z-Scores towards the upper band suggest increasing positive momentum, possible market tops or strength.

Falling Z-Scores towards the lower band indicate negative momentum, potential bottoms or weakness.

The color-coded table gives an easy visual cue: red/orange for strong positive signals, green/teal for strong negative signals, and gray for neutral zones.

Use cases:

Identify turning points in trending markets.

Filter noisy ROC data for cleaner signals.

Combine with other indicators to time entries and exits more effectively.

3 hari lalu

Nota Keluaran

Smoothed ROC Z-Score with Table

This indicator calculates the Rate of Change (ROC) of a chosen price source and transforms it into a smoothed Z-Score oscillator, allowing you to identify market cycle tops and bottoms with reduced noise.

How it works:

The ROC is calculated over a user-defined length.

A moving average and standard deviation over a separate window are used to standardize the ROC into a Z-Score.

This Z-Score is further smoothed using an exponential moving average (EMA) to filter noise and highlight clearer cycle signals.

The smoothed Z-Score oscillates around zero, with upper and lower bands defined by user inputs (default ±2 standard deviations).

When the Z-Score reaches or exceeds ±3 (customizable), the value shown in the table is clamped at ±2 for clearer interpretation.

The indicator plots the smoothed Z-Score line with zero and band lines, and displays a colored Z-Score table on the right for quick reference.

How to read it:

Values near zero indicate neutral momentum.

Rising Z-Scores towards the upper band suggest increasing positive momentum, possible market tops or strength.

Falling Z-Scores towards the lower band indicate negative momentum, potential bottoms or weakness.

The color-coded table gives an easy visual cue: red/orange for strong positive signals, green/teal for strong negative signals, and gray for neutral zones.

Use cases:

Identify turning points in trending markets.

Filter noisy ROC data for cleaner signals.

Combine with other indicators to time entries and exits more effectively.