Our ZClassic indicator is an outstanding indicator to determine the position of price in units of Standard Deviation from a set period average, that is, helps you visualize how much price has deviated from the mean. This indicator is part of a bundle of 5 indicators which we call the ZScore Indicator Suite, all based on the ZScore function of statistics, when used together can form an entire system.
In this particular mode (ZClassic) you can see whether Price is above or below the mean average of Price, that is a simple moving average (period of your choice), determined by a + or - value. The value itself represents a Standard Deviation multiplier. A reading below ZERO signifies Price below such average while a reading above ZERO signifies Price trading above the average. How far up or down from the zero line signifies how many units of standard deviation is price deviated from the set moving average.
The indicator when used in combination with the others in the set can help identify breakout moments as well as mean reversal moments. In the image above, without the need of other indicators, we can see how Price was trending to the upside, thus when the ZClassic reached the lower Level it would have served as a mean reversal signal giving us a good entry at a low price. When ZClassic crossed above the upper level it gave us a breakout signal to add to our Long position.
Each indicator in the ZScore Suite has a particular function:
ZClassic: Measures the position of Price in relation to a set average in units of standard deviation.
ZRange: Measures the position of the Standard Deviation itself in relation to a set average, in units of standard deviation.
ZVolumeDelta: Measures the position of Volume Delta in relation to a set average, in units of standard deviation.
ZTrend: Is a custom mathematical function that allows to measure the strength and direction of the Trend in reference to a set average.
In this particular mode (ZClassic) you can see whether Price is above or below the mean average of Price, that is a simple moving average (period of your choice), determined by a + or - value. The value itself represents a Standard Deviation multiplier. A reading below ZERO signifies Price below such average while a reading above ZERO signifies Price trading above the average. How far up or down from the zero line signifies how many units of standard deviation is price deviated from the set moving average.
The indicator when used in combination with the others in the set can help identify breakout moments as well as mean reversal moments. In the image above, without the need of other indicators, we can see how Price was trending to the upside, thus when the ZClassic reached the lower Level it would have served as a mean reversal signal giving us a good entry at a low price. When ZClassic crossed above the upper level it gave us a breakout signal to add to our Long position.
Each indicator in the ZScore Suite has a particular function:
ZClassic: Measures the position of Price in relation to a set average in units of standard deviation.
ZRange: Measures the position of the Standard Deviation itself in relation to a set average, in units of standard deviation.
ZVolumeDelta: Measures the position of Volume Delta in relation to a set average, in units of standard deviation.
ZTrend: Is a custom mathematical function that allows to measure the strength and direction of the Trend in reference to a set average.