Z-Score Statistical Oscillator Indicator

The Statistical Oscillator uses the Z-Score to measure how many standard deviations the current price has moved away from its mean, giving you a statistical read on whether price has reached an extreme. The larger the Z-Score, the further price sits from its average.

The idea is to view price movement through a normal distribution: when price stretches beyond 2 standard deviations, it only lands there roughly 5% of the time, which often points to a pull back toward the mean. The indicator plots the Z-Score as a histogram with ±2σ and ±3σ reference lines, so overbought and oversold zones are easy to spot.

What it shows you

• How far price has drifted from its mean, and whether that move is normal or statistically extreme
• Grey marks the normal range, orange-red flags overbought, green flags oversold
• A touch of ±3σ means a more extreme stretch with a higher chance of reverting

How to use it

• Built for mean-reversion traders looking for fades at extreme readings
• The lookback period is adjustable: shorter reacts faster, longer stays steadier
• Pick your price source from close, open, high and others to match your style