Usage

Z-Deviation Waves Usage

When σ becomes a habit, entries/exits feel less like hunches and more like process.

Quick start

1. Set Period = 50, Label Mode = Z-score (σ), Smoothing = 1.

2. Watch how price behaves at ±1σ / ±2σ / ±3σ for a few cycles.

3. Switch to Price @ σ once you’re ready to turn context into orders/alerts.

4. If the wave chatters, try Smoothing = 3–5.

What the tiers usually imply (not probabilities; just practical heuristics)

• ±1σ: everyday noise; don’t overreact.

• ±2σ: meaningful stretch; prepare for exhaustion or power trend continuation.

• ±3σ: rare extreme; either blow-off risk or a high-energy reversal area—manage size.

Two playbooks

• Mean-reversion

  • Wait for a tag of +2σ/+3σ (or −2σ/−3σ).

  • Look for trend columns to stall or flip, then use structure (candle trigger/HTF level).

  • Target the 0σ or ±1σ area; trail to stay sensible if it keeps running.

• Trend continuation

  • In strong uptrends, pullbacks that hold 0σ/−1σ often become add-points.

  • In downtrends, rallies stalling at 0σ/+1σ are risk-defined short zones.

  • Smoothing = 2–3 can reduce false flips without much lag.

Copy-and-paste presets

• Baseline σ framing: Z-score (σ), Period 50, Smoothing 1, Trend Columns ON, Downside Table ON.

• Tradable levels: Price @ σ, Period 50, Smoothing 3, Downside Table ON (set alerts at −1σ/−2σ/−3σ).

• Presentation grid: Price @ Z, Period 50, Smoothing 3 (uniform spacing across tickers).

• Fast vs. slow window: Panel A Period 20; Panel B Period 100 on the same symbol.

• Smoothing contrast: Smoothing 1 vs. 5 on the same chart.

• Timeframe contrast: Same preset on 5-minute and Daily; consider a longer Period for intraday.

Tuning tips

• Period: shorter (20–30) = faster & noisier; longer (80–100) = steadier & rarer extremes.

• Source: close is crisp; hl2/hlc3 can tame erratic feeds.

• Smoothing: keep it modest (2–5) to reduce chatter without blinding turns.