OPEN-SOURCE SCRIPT
Z-Score Distortion Lab
Name: Z-Score Distortion Lab 🔬
Description:
The Anatomy of Market Volatility
Most indicators focus on price direction, but Z-Score Distortion Lab dives deeper into the "Statistical Health" of the market. This tool analyzes the 3rd and 4th statistical moments—Skewness and Excess Kurtosis—to identify when price action is deviating from a normal distribution.
Key Clinical Features:
Skewness (Neon Line): Measures the asymmetry of price distribution. A high positive/negative skew indicates a strong directional bias or "Distortion" that often precedes trend exhaustion or sharp reversals.
Excess Kurtosis (Aqua Line): Monitors "Fat-Tail Risk." When Kurtosis spikes, it signals extreme market conditions and high volatility where outliers (black swan events) are more likely to occur.
Visual Diagnostics: Equipped with "Risk Triangles" and "Bias Arrows" to highlight statistical anomalies in real-time.
How to use in your "Lab":
Risk Monitoring: Use the Kurtosis threshold to identify high-risk environments where standard strategies might fail.
Bias Detection: Use Skewness arrows to confirm the underlying strength of a move.
Customizable Thresholds: Fully adjustable inputs to fit your specific timeframe and asset class.
Disclaimer:
This tool is for statistical analysis and educational purposes only. It does not provide financial advice or guaranteed trade signals. Always use proper risk management.
Description:
The Anatomy of Market Volatility
Most indicators focus on price direction, but Z-Score Distortion Lab dives deeper into the "Statistical Health" of the market. This tool analyzes the 3rd and 4th statistical moments—Skewness and Excess Kurtosis—to identify when price action is deviating from a normal distribution.
Key Clinical Features:
Skewness (Neon Line): Measures the asymmetry of price distribution. A high positive/negative skew indicates a strong directional bias or "Distortion" that often precedes trend exhaustion or sharp reversals.
Excess Kurtosis (Aqua Line): Monitors "Fat-Tail Risk." When Kurtosis spikes, it signals extreme market conditions and high volatility where outliers (black swan events) are more likely to occur.
Visual Diagnostics: Equipped with "Risk Triangles" and "Bias Arrows" to highlight statistical anomalies in real-time.
How to use in your "Lab":
Risk Monitoring: Use the Kurtosis threshold to identify high-risk environments where standard strategies might fail.
Bias Detection: Use Skewness arrows to confirm the underlying strength of a move.
Customizable Thresholds: Fully adjustable inputs to fit your specific timeframe and asset class.
Disclaimer:
This tool is for statistical analysis and educational purposes only. It does not provide financial advice or guaranteed trade signals. Always use proper risk management.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.