Z-Score or the standard score is the number of standard deviations by which the price value is above or below the price mean value. A Z-score zero indicates a price above the mean, which is an this case a moving average. A negative Z-score indicates a price below the mean. Maximal or minimal values of the Z-score indicate the tendency of a price evolution direction change. This is how we use the Z-score to generate automated entry or exit signals combined with any of Cyclicality indicators.

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The efficiency of the Z-Score indicator was proved during the time, having a very precise evolution, especially in the long-time intervals (H4, D1, W1) for every market. For the small timeframes (M1, M5, M15, M30, H1), the Z-Score is a very good option combined with other known indicators like RSI, CCI, MACD etc. The indicator can be successfully used for manual trading or can be automated by importing the specific data series. The Z-Score indicator is an important part of the algorithms included in successful expert advisors like Dow Jones Predictor, Dow Jones Trader, Gold Predictor, or Gold Trader.