FAQs

Mayer Multiple Z-score FAQs

What is the Mayer Multiple here?

It’s price ÷ SMA using your chosen length (default 200). The script then converts that ratio into a Z-Score based on your undervalue/overvalued mapping.

Why use a cumulative-to-rolling SMA?

Early bars shouldn’t pretend you have a full 200-bar history. The average grows honestly until the lookback is filled, then behaves like a standard SMA—clean and non-repainting.

Do any plots repaint?

No. The SMA, Z-Score, and its EMA use completed historical data. Values only change intrabar while the bar is forming, then lock after close.

How should I pick the thresholds (0.5 / 2.0)?

Keep the span at roughly 6σ for comparability; move the endpoints to match asset class. Higher-vol assets may warrant a higher “overvalued” multiple (e.g., 2.5) and/or a lower “undervalue” multiple.

Will bar coloring affect performance or visibility of other indicators?

Barcolor is purely visual; if it clashes, disable Bar Color and keep the Z-Score/EMA plots and fills as your primary cues.