Z-Phantom Wave | Oquant

Overview
The Z-Phantom Wave is a multi-timeframe Z-score indicator designed to help traders visualize price deviations from the mean across various timeframes in a single, easy-to-read table and plot format. It highlights overbought and oversold conditions based on customizable thresholds, providing a structured way to assess market extremes. This indicator stands out by aggregating Z-scores from up to 10 user-defined timeframes, allowing for a comprehensive view of price normalization that can aid in identifying potential mean-reversion opportunities or trend continuations.

Key Features/Components
Multi-Timeframe Aggregation: Calculates and displays Z-scores from up to 10 customizable timeframes, enabling traders to compare deviations across short-term and long-term perspectives simultaneously.
Interactive Table Display: A compact table on the chart shows timeframe labels, corresponding Z-score values, and color-coded backgrounds for quick identification of overbought (purple) or oversold (green) zones.
Plot Z-score Lines: Individual Z-score lines for each timeframe are plotted with distinct colors for visual tracking.
Background Coloring: Optional chart background fills in overbought(purple)/oversold(green) zones based on each timeframe's Z-score.
Dynamic Background Intensity: When multiple Z-scores trigger overbought (above ob threshold) or oversold (below os threshold) conditions, the semi-transparent backgrounds overlap, resulting in stronger color intensity to visually highlight timeframe confluence.
Source Flexibility: Supports various price sources (e.g., close, high, low) or moving averages (e.g., SMA, EMA, HMA) for the Z-score calculation, with an adjustable length for the z-score.
Timeframe Warning: Automatically alerts users if the chart timeframe is higher than the smallest selected input timeframe, promoting accurate usage.

How It Works
The indicator computes Z-scores by measuring how many standard deviations the selected source is away from its mean over a specified length. This is done independently for each user-defined timeframe. The results are then compiled into a table where values exceeding the overbought threshold turn the cell purple, and those below the oversold threshold turn green, signaling potential extremes. Plots update when the timeframes bar closes, and optional backgrounds highlight these zones across the chart. For added confluence detection, the backgrounds use semi-transparency; when multiple timeframes align in OB or OS conditions, their overlap intensifies the color (e.g., deeper purple for stronger overbought confluence), providing potential trade opportunities. This approach uses statistical normalization to provide a multi-layered view of market conditions, helping traders spot alignments or divergences.

Recommended Use Cases
This indicator is best suited for mean-reversion traders, swing traders, or those incorporating multi-timeframe analysis into their strategies. It is particularly useful in ranging markets. For example, scalpers might focus on lower timeframes for quick signals, while position traders could prioritize higher ones for broader context.

Settings and Default Settings
Z-score Source (Default: "close"): Selects the base input for z-score calculations, such as open, high, low, close, or moving averages like SMA or EMA.
Z-score Length (Default: 60): The period used to calculate the mean and standard deviation for the Z-score.
Moving Average Source (Default: close): The data source for any moving average selected in Z-score Source.
MA Length (Default: 25): The length for the chosen moving average type.
Overbought Threshold (Default: 2.0): The upper Z-score level triggering purple highlights.
Oversold Threshold (Default: -2.0): The lower Z-score level triggering green highlights.
Plot Background on OB/OS Zones (Default: True): Enables/disables chart background coloring for overbought/oversold zones.
Timeframe 1 to 10 (Defaults: 1W, 3D, 1D, 12h, 8h, 6h, 4h, 3h, 2h, 1h): User-selectable timeframes for Z-score calculations; ensure the chart timeframe is at or below the smallest selected timeframe.

Conclusion
The Z-Phantom Wave offers a straightforward tool for integrating statistical insights across multiple timeframes, helping traders make more informed decisions by highlighting price deviations. Its table-based presentation simplifies reading the z-scores, making it accessible for various experience levels.

⚠️ Disclaimer: This indicator is intended for educational and informational purposes only. Trading/investing involves risk, and past performance does not guarantee future results. Always test and evaluate indicators/strategies before applying them in live markets. Use at your own risk.