Z-score standardizes a stretch away from the mean into a single comparable number: z = (price − rolling mean) / rolling standard deviation. A z-score of −2 means price is two standard deviations below its recent average, a statistically unusual dip, whatever the coin or its normal volatility.
It does the same conceptual job as Bollinger Bands (both measure how far from the mean, in standard-deviation terms), but as a continuous number rather than a fixed band. That's useful for setting a precise, comparable trigger threshold ("enter when z is at or below −1.5") that behaves consistently across assets with very different price and volatility scales.
zengtrade's z-score reversion strategy uses a shorter, shallower trigger than its Bollinger equivalent, a faster lookback and a smaller stretch requirement, deliberately built as a quicker, more frequent alternative rather than a duplicate of the same trade.
Educational content, not investment advice. zengtrade is paper-first and non-custodial.