Z-Score Indicator for ThinkorSwim

[MerryDay]

Z-score oscillator measures how far a data point is from the mean, displaying whether it's above or below the average.

Day traders use the Z-score to spot potential entry and exit points by measuring how far a stock's price deviates from its historical average. It helps identify when a stock is "overbought" (high positive Z-score) or "oversold" (low negative Z-score), signaling possible price reversals.

Key points:

• Identifying Price Deviations: The Z-score converts price data into standard deviations, with larger values showing stronger deviations from the average.
• Mean Reversion Strategy: Traders buy when a stock is oversold (low Z-score) and sell when overbought (high Z-score), aiming for the price to return to its average.

https://www.thetatrend.com/z-score-an-indicator-to-define-overbought-and-oversold-thinkscript/

#Computes and plots the Zscore
#Provided courtesy of ThetaTrend.com
#Feel free to share the indicator, but please provide a link back to ThetaTrend.com

declare lower;

input price = close;
input length = 20;
input ZavgLength = 20;

#Initialize values
def oneSD = stdev(price,length);
def avgClose = simpleMovingAvg(price,length);
def ofoneSD = oneSD*price[1];
def Zscorevalue = ((price-avgClose)/oneSD);
def avgZv = average(Zscorevalue,20);

#Compute and plot Z-Score
plot Zscore = ((price-avgClose)/oneSD);
Zscore.setPaintingStrategy(paintingStrategy.HISTOGRAM);
Zscore.setLineWeight(2);
Zscore.assignValueColor(if Zscore > 0 then color.green else color.red);

plot avgZscore = average(Zscorevalue,ZavgLength);
avgZscore.setPaintingStrategy(paintingStrategy.LINE);

#This is an optional plot that will display the momentum of the Z-Score average
#plot momZAvg = (avgZv-avgZv[5]);

#Plot zero line and extreme bands
plot zero = 0;
plot two = 2;
plot negtwo = -2;
zero.setDefaultColor(color.black);

https://www.google.com/search?q=zsc...cABAdoBBggBEAEYCdoBBggCEAEYCA&sclient=gws-wiz

 

[MerryDay]

Z-Score Label:

#Computes and plots the Zscore
#Provided courtesy of ThetaTrend.com
#Feel free to share the indicator, but please provide a link back to ThetaTrend.com

input price = close;
input length = 20;
input ZavgLength = 20;

#Initialize values
def oneSD = stdev(price,length);
def avgClose = simpleMovingAvg(price,length);
def ofoneSD = oneSD*price[1];
def Zscorevalue = ((price-avgClose)/oneSD);
def avgZv = average(Zscorevalue,20);

#Compute and plot Z-Score
def Zscore = ((price-avgClose)/oneSD);

DefineGlobalColor("Bear",  CreateColor(225, 0, 0)) ;
DefineGlobalColor("Bull",  CreateColor(0, 165, 0)) ;
AddLabel(yes, "Zscore: " +Zscore, if Zscore>0 then GlobalColor("Bull") else GlobalColor("Bear"));

 

[PAYtience]

Can someone please help me convert this into static timeframe of 5 mins?

#Computes and plots the Zscore
#Provided courtesy of ThetaTrend.com
#Feel free to share the indicator, but please provide a link back to ThetaTrend.com

declare lower;

input price = hl2;
input length = 15;
input ZavgLength =15;

#Initialize values
def oneSD = stdev(price,length);
def avgClose = simpleMovingAvg(price,length);
def ofoneSD = oneSD*price[1];
def Zscorevalue = ((price-avgClose)/oneSD);
def avgZv = average(Zscorevalue,20);

#Plot zero line and extreme bands
plot zero = 0;
def two = 2;
def negtwo = -2;
def one = 1;
def negone = -1;
zero.setDefaultColor(color.WHITE);

#Compute and plot Z-Score
plot Zscore = ((price-avgClose)/oneSD);
Zscore.setPaintingStrategy(paintingStrategy.HISTOGRAM);
Zscore.setLineWeight(2);
Zscore.assignValueColor(if Zscore > 0 and Zscore < 1 then color.white
else if  Zscore >= 1 and Zscore < 2 then color.green
else if  Zscore >= 2 then color.dark_green
else if  Zscore <= 0 and Zscore > -1 then color.gray
else if  Zscore <= -1 and Zscore > -2 then color.red
else if  Zscore <= -2 then color.dark_red
else color.black);

plot avgZscore = average(Zscorevalue,ZavgLength);
avgZscore.setPaintingStrategy(paintingStrategy.LINE);

#This is an optional plot that will display the momentum of the Z-Score average
#plot momZAvg = (avgZv-avgZv[5]);




#// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
#// © Beardy_Fred
#indicator('Beardy Squeeze Pro', shorttitle='Squeeze', overlay=false, precision=2)
# Converted by Sam4Cok@Samer800        - 05/2023

input ShowLabel = yes;        # "Alert Price Action Squeeze"
input MovAvgType   = AverageType.SIMPLE;
#input length       = 20;      # "TTM Squeeze Length"
input BB_mult      = 2.0;     # "Bollinger Band STD Multiplier"
input KC_mult_high = 1.0;     # "Keltner Channel #1"
input KC_mult_mid  = 1.5;     # "Keltner Channel #2"
input KC_mult_low  = 2.0;     # "Keltner Channel #3"

def na = Double.NaN;
def last = isNaN(close);

#--- Color
DefineGlobalColor("up1", CreateColor(0,188,212));
DefineGlobalColor("up2", CreateColor(41,98,255));
DefineGlobalColor("dn1", CreateColor(255,82,82));
DefineGlobalColor("dn2", CreateColor(255,235,59));
#------
DefineGlobalColor("sqz1", Color.Dark_Orange);
DefineGlobalColor("sqz2", Color.Yellow);
DefineGlobalColor("sqz3", Color.GRAY);#CreateColor(54,58,69));
DefineGlobalColor("sqz4", Color.BLUE);
#//BOLLINGER BANDS
def BB_basis = MovingAverage(MovAvgType, close, length);
def dev      = BB_mult * stdev(close, length);
def BB_upper = BB_basis + dev;
def BB_lower = BB_basis - dev;



#//KELTNER CHANNELS
def tr = TrueRange(high, close, low);
def KC_basis = MovingAverage(MovAvgType, close, length);
def devKC    = MovingAverage(MovAvgType, tr, length);
def KC_upper_high = KC_basis + devKC * KC_mult_high;
def KC_lower_high = KC_basis - devKC * KC_mult_high;
def KC_upper_mid  = KC_basis + devKC * KC_mult_mid;
def KC_lower_mid  = KC_basis - devKC * KC_mult_mid;
def KC_upper_low  = KC_basis + devKC * KC_mult_low;
def KC_lower_low  = KC_basis - devKC * KC_mult_low;

#//SQUEEZE CONDITIONS
def NoSqz   = BB_lower < KC_lower_low or BB_upper > KC_upper_low;# //NO SQUEEZE: BLUE
def LowSqz  = BB_lower >= KC_lower_low or BB_upper <= KC_upper_low;# //LOW COMPRESSION: BLACK
def MidSqz  = BB_lower >= KC_lower_mid or BB_upper <= KC_upper_mid;# //MID COMPRESSION: YELLOW
def HighSqz = BB_lower >= KC_lower_high or BB_upper <= KC_upper_high;# //HIGH COMPRESSION: ORANGE

#//MOMENTUM OSCILLATOR
def hh = highest(high, length);
def ll = lowest(low, length);
def avg = (hh + ll) /2;
def avgSMA = (avg + KC_basis) / 2;
def mom = Inertia(close - avgSMA, length);

#//MOMENTUM HISTOGRAM COLOR
def iff_1 = if mom > mom[1] then  2 else  1;
def iff_2 = if mom < mom[1] then -2 else -1;
def mom_color = if mom > 0 then iff_1 else iff_2;

#//SQUEEZE DOTS COLOR
def sq_color = if HighSqz then 3 else
               if MidSqz then 2 else
               if LowSqz then 1 else 0;

#//PLOTS

plot SQZ = if last then na else 3;          # 'SQZ'
plot SQZneg = if last then na else -3;          # 'SQZ'
#plot momentum = mom;                        # 'MOM'
#momentum.SetLineWeight(4);
#momentum.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
#momentum.AssignValueColor(if mom_color== 2 then GlobalColor("up1") else
#                          if mom_color== 1 then GlobalColor("up2") else
#                          if mom_color==-2 then GlobalColor("dn1") else
#                          if mom_color==-1 then GlobalColor("dn2") else Color.GRAY);
SQZ.SetLineWeight(5);
SQZ.SetPaintingStrategy(PaintingStrategy.LINE);
SQZ.AssignValueColor(if sq_color==3 then GlobalColor("sqz1") else
                     if sq_color==2 then GlobalColor("sqz2") else
                     if sq_color==1 then GlobalColor("sqz3") else GlobalColor("sqz4"));

SQZneg.SetLineWeight(5);
SQZneg.SetPaintingStrategy(PaintingStrategy.LINE);
SQZneg.AssignValueColor(if sq_color==3 then GlobalColor("sqz1") else
                     if sq_color==2 then GlobalColor("sqz2") else
                     if sq_color==1 then GlobalColor("sqz3") else GlobalColor("sqz4"));




#--- END OF CODE

 

[useThinkScript]

Can someone please help me convert this into static timeframe of 5 mins?

#Computes and plots the Zscore
input price = hl2;

To change the Z-score to a MTF multi-timeframe indicator

change this line of code:

input price = hl2;

to this:

input agg = AggregationPeriod.FIVE_MIN;
def price = hl2(period = agg);

**The script will ONLY work on timeframes of 5-min and less.​

**The indicator will repaint.​

IE: if put on a 1-min chart, the indicator will repaint every tick for 5 bars until the 5-min candle closes.​

 

[PAYtience]

To change the Z-score to a MTF multi-timeframe indicator

change this line of code:


to this:

**The script will ONLY work on timeframes of 5-min and less.​

**The indicator will repaint.​

IE: if put on a 1-min chart, the indicator will repaint every tick for 5 bars until the 5-min candle closes.​

Thank You

 

[jserenson1153]

Z-score oscillator measures how far a data point is from the mean, displaying whether it's above or below the average.

Day traders use the Z-score to spot potential entry and exit points by measuring how far a stock's price deviates from its historical average. It helps identify when a stock is "overbought" (high positive Z-score) or "oversold" (low negative Z-score), signaling possible price reversals.

Key points:

• Identifying Price Deviations: The Z-score converts price data into standard deviations, with larger values showing stronger deviations from the average.
• Mean Reversion Strategy: Traders buy when a stock is oversold (low Z-score) and sell when overbought (high Z-score), aiming for the price to return to its average.

https://www.thetatrend.com/z-score-an-indicator-to-define-overbought-and-oversold-thinkscript/

#Computes and plots the Zscore
#Provided courtesy of ThetaTrend.com
#Feel free to share the indicator, but please provide a link back to ThetaTrend.com

declare lower;

input price = close;
input length = 20;
input ZavgLength = 20;

#Initialize values
def oneSD = stdev(price,length);
def avgClose = simpleMovingAvg(price,length);
def ofoneSD = oneSD*price[1];
def Zscorevalue = ((price-avgClose)/oneSD);
def avgZv = average(Zscorevalue,20);

#Compute and plot Z-Score
plot Zscore = ((price-avgClose)/oneSD);
Zscore.setPaintingStrategy(paintingStrategy.HISTOGRAM);
Zscore.setLineWeight(2);
Zscore.assignValueColor(if Zscore > 0 then color.green else color.red);

plot avgZscore = average(Zscorevalue,ZavgLength);
avgZscore.setPaintingStrategy(paintingStrategy.LINE);

#This is an optional plot that will display the momentum of the Z-Score average
#plot momZAvg = (avgZv-avgZv[5]);

#Plot zero line and extreme bands
plot zero = 0;
plot two = 2;
plot negtwo = -2;
zero.setDefaultColor(color.black);

https://www.google.com/search?q=zsc...cABAdoBBggBEAEYCdoBBggCEAEYCA&sclient=gws-wiz

Will this work for longer term trading like swing trading looking for a change of trend