Z-Score measures how many standard deviations the price is from its 20-period moving average. Formula: (Price - MA₂₀) / StdDev₂₀. Values beyond ±2 indicate statistically extreme conditions.
Parameters (20-period)
Overbought: Z > +2 — price statistically extended high
Fair Value: -2 ≤ Z ≤ +2 — within normal range
Oversold: Z < -2 — price statistically depressed
Interpretation
Stretched High: Z > +2 may signal a reversion pullback
Stretched Low: Z < -2 may signal a mean reversion bounce
Z ≈ 0 means price is at its moving average
Data refreshes periodically — not real-time
Trading Signals
Beyond ±2 = price statistically stretched from its mean
Re-entry from beyond ±2 back inside = mean-reversion trigger
Persistent positive Z in a trend = momentum strength, not an automatic fade
Price Overlay
Close Price: Daily closing price (right Y-axis)
Z > +2 + price stalling = mean reversion pullback likely
Z < -2 + price stabilizing = mean reversion bounce likely
Z trending toward 0 + price trending = healthy normalization