Re: What, exactly, is Z-score?

[CP4w@xxxxxxx]

z = particular score (e.g. price) - mean of scores (e.g. value of 10-moving
average) divided by the standard deviation of the scores. z is a measure of
variability and is related to probability (if the scores are assumed to be
normally distributed). For example, if a score has a z-value of 1.0 that score
is higher than 85% of the scores. The probability of a higher value is 0.15.
The bottom line is that z can suggest the probability of a score occuring. If
a stocks price has a probability of .05 it is a relatively rare event and some
may consider it significant, suggesting a reliable breakout or something maybe
occuring.

Further, the prices of different stocks can be compared using z-values. If ABC
has a z of 1.5 and XYZ has a z-value of 2, then the price of XYZ  is further
from its mean than is ABC.