Indicator Overview

The Z-Score Probability Waves indicator presents a statistically grounded framework for understanding price deviation extremes in the equal-weighted Top 10 Altcoin Index relative to a smoothed mean. This index compiles the following top 10 utility-focused altcoins (as of December 2025):

1. Ethereum (ETH)

2. XRP (XRP)

3. BNB (BNB)

4. Solana (SOL)

5. Cardano (ADA)

6. Chainlink (LINK)

7. TRON (TRX)

8. Monero (XMR)

9. Avalanche (AVAX)

10. Litecoin (LTC)

The index price is calculated as the average of these 10 altcoins’ prices (equal weighting).

By using Z-Score normalisation over a configurable lookback period, it quantifies how far the index price has moved from its expected average in standard deviation units, which is an approach widely used in quantitative analysis to identify overbought and oversold zones with mathematical rigour across this diverse group of established Layer-1, infrastructure, and utility-driven cryptocurrencies.

How To Use

The Z-score columns turn green above zero, signalling bullish momentum across the altcoin basket, and red below, indicating bearish pressure. Values exceeding ±2 (yellow zone) suggest overbought or oversold conditions, while ±3 (orange) or ±4 (red) mark extreme reversals, historically preceding sector-wide corrections or rallies. Labeled price levels for each zone guide entry or exit points. Traders can buy (or increase exposure) near -2 or lower (oversold) and sell near +2 or higher (overbought). Investors may accumulate positions in these top altcoins during negative Z-score dips and reduce exposure at positive peaks, aligning with the altcoin sector’s cyclical statistical patterns for precise market timing in a volatile yet fundamentally driven market environment.