350DMA bands + Z-score (V2)

This script extends the classic 350-day moving average (350DMA) by building dynamic valuation bands and a Z-Score framework to evaluate how far price deviates from its long-term mean.

Features

350DMA Anchor: Uses the 350-day simple moving average as the baseline reference.

Fixed Multipliers: Key bands plotted at ×0.625, ×1.0, ×1.6, ×2.0, and ×2.5 of the 350DMA — historically significant levels for cycle analysis.

Z-Score Mapping: Price is converted into a Z-Score on a scale from +2 (deep undervaluation) to –2 (extreme overvaluation), using log-space interpolation for accuracy.

Custom Display: HUD panel and on-chart label show the current Z-Score in real time.

Clamp Option: Users can toggle between raw Z values or capped values (±2).

How to Use

Valuation Context: The 350DMA is often considered a “fair value” anchor; large deviations identify cycles of under- or over-valuation.

Z-Score Insight:

Positive Z values suggest favorable accumulation zones where price is below long-term average.

Negative Z values highlight zones of stretched valuation, often associated with distribution or profit-taking.

Strategic Application: This is not a standalone trading system — it works best in confluence with other indicators, cycle models, or macro analysis.

Originality

Unlike a simple DMA overlay, this script:

Provides multiple cycle-based bands derived from the 350DMA.

Applies a logarithmic Z-Score mapping for more precise long-term scaling.

Adds an integrated HUD and labeling system for quick interpretation.