Z score measures the number of standard deviations price is from its mean.
In this study, z scores are calculated over a Fibonacci sequence of sampling periods from 3 to 4181.
The scores are then averaged with equal weighting, resulting in a display of long term trend with short term sensitivity.
Custom bar colors are included. The color scheme is based on the perceived trend from the average z score.
Added dynamic weightings to the script based on a request @mcbw_.
There are four weigting methods to choose from:
-> Equal Weights - The original method.
-> Volume Weights - Weights each Z score by its cumulative volume
-> Length Weights - Weights each Z score by its sampling period
-> Volatility Weights - Weights each Z score by its standard deviation of price over its respective sampling period
Added exponential smoothing to the script for a noise reduced result
Made some changes to the aesthetic:
-> Average Z Score is now plotted as columns
-> Individual Z Scores are now plotted as circles
I could always incorporate different weighting options though, so I'll play around with some different methods for weighting and incorporate any useful ones in an update.