The Z-score statistical indicator is a useful tool for Forex traders, providing essential insights into currency price movements. The Z-score indicator is usually included as part of MetaTrader 4 (MT4) trading platforms, which allow traders to view and analyze the data.
The Z-score indicator computes the standard deviation of a security’s price movements over a given period of time. This number is then transformed into a score, signaling possible price reversals in a currency pair. By using the Z-score, traders can help identify price patterns and assess the strength or weakness of the trend.
In Forex trading, the Z-score indicator can provide valuable information on market movements. By using this tool, traders can better anticipate potential reversals in price.