200WMA Overlay + Z (heatmap mapping)

This script enhances the classic 200-week moving average (200WMA), a long-term market reference line, by adding Z-Score mapping and optional helper bands for extended cycle analysis.

Features

200WMA Anchor: Plots the true 200-week simple moving average on any chart, a widely followed metric for long-term Bitcoin and crypto cycles.

Helper Multiples: Optional overlay of key historical ratios (×0.625, ×1.6, ×2.0, ×2.5) often referenced as cycle support/resistance zones.

Z-Score Mapping: Translates the ratio of price to 200WMA into a Z-Score scale (from +2.5 to –2.5), offering a statistical perspective on whether the market is undervalued, neutral, or overheated relative to its long-term mean.

On-Chart Label: Current Z-Score displayed directly on the last bar for quick reference.

How to Use

Long-Term Valuation: The 200WMA serves as a “fair value” baseline; large deviations highlight extended phases of market sentiment.

Heatmap Context:

Positive Z values typically mark undervaluation or favorable accumulation zones.

Negative Z values highlight overvaluation or profit-taking / distribution zones.

Strategic View: Best used to contextualize long-term market cycles, not for short-term signals.

Confluence Approach: This indicator should not be used alone — combine it with other technical or fundamental tools for stronger decision-making.

Originality

Unlike a basic 200WMA overlay, this version:

Incorporates multi-band ratios for extended cycle mapping.

Introduces a custom Z-Score scale tied directly to price/WMA ratios.

Provides both visual structure and statistical interpretation on a single overlay.