Uptrick: Dynamic Z-Score Divergence

Introduction
Uptrick: Dynamic Z-Score Divergence is an oscillator that combines multiple momentum sources within a Z-Score framework, allowing for the detection of statistically significant mean-reversion setups, directional shifts, and divergence signals. It integrates a multi-source normalized oscillator, a slope-based signal engine, structured divergence logic, a slope-adaptive EMA with dynamic bands, and a modular bar coloring system. This script is designed to help traders identify statistically stretched conditions, evolving trend dynamics, and classical divergence behavior using a unified statistical approach.

Overview
At its core, this script calculates the Z-Score of three momentum sources—RSI, Stochastic RSI, and MACD—using a user-defined lookback period. These are averaged and smoothed to form the main oscillator line. This normalized oscillator reflects how far short-term momentum deviates from its mean, highlighting statistically extreme areas.

Signals are triggered when the oscillator reverses slope within defined inner zones, indicating a shift in direction while the signal remains in a statistically stretched state. These mean-reversion flips (referred to as TP signals) help identify turning points when price momentum begins to revert from extended zones.

In addition, the script includes a divergence detection engine that compares oscillator pivot points with price pivot points. It confirms regular bullish and bearish divergence by validating spacing between pivots and visualizes both the oscillator-side and chart-side divergences clearly.

A dynamic trend overlay system is included using a Slope Adaptive EMA (SA-EMA). This trend line becomes more responsive when Z-Score deviation increases, allowing the trend line to adapt to market conditions. It is paired with ATR-based bands that are slope-sensitive and selectively visible—offering context for dynamic support and resistance.

The script includes configurable bar coloring logic, allowing users to color candles based on oscillator slope, last confirmed divergence, or the most recent signal of any type. A full alert system is also built-in for key signals.

Originality
The script is based on the well-known concept of Z-Score valuation, which is a standard statistical method for identifying how far a signal deviates from its mean. This foundation—normalizing momentum values such as RSI or MACD to measure relative strength or weakness—is not unique to this script and is widely used in quantitative analysis.

What makes this implementation original is how it expands the Z-Score foundation into a fully featured, signal-producing system. First, it introduces a multi-source composite oscillator by combining three momentum inputs—RSI, Stochastic RSI, and MACD—into a unified Z-Score stream. Second, it builds on that stream with a directional slope logic that identifies turning points inside statistical zones.

The most distinctive additions are the layered features placed on top of this normalized oscillator:

• A structured divergence detection engine that compares oscillator pivots with price pivots to validate regular bullish and bearish divergence using precise spacing and timing filters.
  
  
• A fully integrated slope-adaptive EMA overlay, where the smoothing dynamically adjusts based on real-time Z-Score movement of RSI, allowing the trend line to become more reactive during high-momentum environments and slower during consolidation.
  
  
• ATR-based dynamic bands that adapt to slope direction and offer real-time visual zones for support and resistance within trend structures.
  

These features are not typically found in standard Z-Score indicators and collectively provide a unique approach that bridges statistical normalization, structure detection, and adaptive trend modeling within one script.

Features

• Z-Score-based oscillator combining RSI, StochRSI, and MACD
  
  
• Configurable smoothing for stable composite signal output
  
  
• Buy/Sell TP signals based on slope flips in defined zones
  
  
• Background highlighting for extreme outer bands
  
  
• Inner and outer zones with fill logic for statistical context
  
  
• Pivot-based divergence detection (regular bullish/bearish)
  
  
• Divergence markers on oscillator and price chart
  
  
• Slope-Adaptive EMA (SA-EMA) with real-time adaptivity based on RSI Z-Score
  
  
• ATR-based upper and lower bands around the SA-EMA, visibility tied to slope direction
  
  
• Configurable bar coloring (oscillator slope, divergence, or most recent signal)
  
  
• Alerts for TP signals and confirmed divergences
  
  
• Optional fixed Y-axis scaling for consistent oscillator view
  

The full setup mode can be seen below:

Input Parameters

General Settings

• Full Setup: Enables rendering of the full visual system (lines, bands, signals)
  
  
• Z-Score Lookback: Lookback period for normalization (mean and standard deviation)
  
  
• Main Line Smoothing: EMA length applied to the averaged Z-Score
  
  
• Slope Detection Index: Used to calculate directional flips for signal logic
  
  
• Enable Background Highlighting: Enables visual region coloring in
  overbought/oversold areas
  
  
• Force Visible Y-Axis Scale: Forces max/min bounds for a consistent oscillator range
  

Divergence Settings

• Enable Divergence Detection: Toggles divergence logic
  
  
• Pivot Lookback Left / Right: Defines the structure of oscillator pivot points
  
  
• Minimum / Maximum Bars Between Pivots: Controls the allowed spacing range for divergence validation
  

Bar Coloring Settings

• Bar Coloring Mode:
  ➜ Line Color: Colors bars based on oscillator slope
  ➜ Latest Confirmed Signal: Colors bars based on the most recent confirmed divergence
  ➜ Any Latest Signal: Colors based on the most recent signal (TP or divergence)
  

SA-EMA Settings

• RSI Length: RSI period used to determine adaptivity
  
  
• Z-Score Length: Lookback for normalizing RSI in adaptive logic
  
  
• Base EMA Length: Base length for smoothing before adaptivity
  
  
• Adaptivity Intensity: Scales the smoothing responsiveness based on RSI deviation
  
  
• Slope Index: Determines slope direction for coloring and band logic
  
  
• Band ATR Length / Band Multiplier: Controls the width and responsiveness of the trend-following bands
  

Alerts
The script includes the following alert conditions:

• Buy Signal (TP reversal detected in oversold zone)
  
  
• Sell Signal (TP reversal detected in overbought zone)
  
  
• Confirmed Bullish Divergence (oscillator HL, price LL)
  
  
• Confirmed Bearish Divergence (oscillator LH, price HH)
  

These alerts allow integration into automation systems or signal monitoring setups.

Summary
Uptrick: Dynamic Z-Score Divergence is a statistically grounded trading indicator that merges normalized multi-momentum analysis with real-time slope logic, divergence detection, and adaptive trend overlays. It helps traders identify mean-reversion conditions, divergence structures, and evolving trend zones using a modular system of statistical and structural tools. Its alert system, layered visuals, and flexible input design make it suitable for discretionary traders seeking to combine quantitative momentum logic with structural pattern recognition.

Disclaimer
This script is for educational and informational purposes only. No indicator can guarantee future performance, and trading involves risk. Always use risk management and test strategies in a simulated environment before deploying with live capital.