Premier Stochastic Oscillator [LazyBear, V2]

This script builds on the well-known Premier Stochastic Oscillator (PSO) originally introduced by LazyBear, and adds a Z-Score extension to provide statistical interpretation of momentum extremes.

Features

Premier Stochastic Core: A smoothed stochastic calculation that highlights bullish and bearish momentum phases.

Z-Score Mapping: The PSO values are standardized into Z-Scores (from –3 to +3), quantifying the degree of momentum stretch.

Positive / Negative Z-Scores:

Positive Z values suggest momentum strength that can align with accumulation or favorable buying conditions.

Negative Z values indicate stronger bearish pressure, often aligning with selling or distribution conditions.

On-Chart Label: The current Z-Score is displayed on the latest bar for quick reference.

How to Use

Momentum Confirmation: Use the oscillator to confirm whether bullish or bearish momentum is intensifying.

Overextended Conditions: Extreme Z-Scores (±2 or beyond) highlight statistically stretched conditions, often preceding reversions.

Strategic Integration: Best applied in confluence with trend tools or higher-timeframe filters; not a standalone trading signal.

Originality

Unlike the standard PSO, this version:

Adds a Z-Score framework for objective statistical scaling.

Provides real-time labeling of Z values for clarity.

Extends the classic oscillator into a tool for both momentum detection and mean-reversion context.