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Z-Score Indicator

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A Z-Score measures how many standard deviations a value is from its mean.
In finance, it indicates how far the current price is from its historical average in statistical terms.

Practically speaking, the Z-Score quantifies price anomalies and serves as the statistical foundation behind mean-reversion strategies and dispersion analysis (pairs trading, Z-bands, etc.).

±1σ: normal movement.
±2σ: moderate overextension.
±3σ: statistically extreme event (≈ 0.3% probability under a normal distribution).

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