This calculation allows us to compare current to the mean (moving average) of the population (Z-Length). The closer the VQZL Z-Score is to the mean, the closer it will be to the Zero Line and therefore price is likely consolidating and choppy. The farther VQZL Z-Score is from the mean, the more likely price is trending.
The MA Mode determines the Moving Average used to calculate VQZL itself. The Z-Score is ALWAYS calculated with a (as that is the standard calculation for Z-Score).
The Threshold Levels are the levels at which VQZL Z-Score will change from gray to yellow, orange, green ( ), or red ( ). These levels can be adjusted but you should adjust the Threshold Lines as well (in the style section), so they line up with your adjusted values.
Statistically speaking, confidence levels in relation to Z-Score are noted below. The built in Threshold Levels are the positive and negative values for 90%, 95%, and 99%. This would indicate when is greater than these values they are out of the ordinary from the standard range. You may wish to adjust these levels for VQZL Z-Score to be more responsive to your trading need
80% :: 1.28
85% :: 1.44
90% :: 1.64
95% :: 1.96
99% :: 2.58
As always, trade at your own risk.
VQZL Created by Investo And Adapted From @sarangab
Multiple MA Options Credits to @Fractured
Bits and Pieces from @AlexGrover and @Montyjus
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.