Puell Multiple Z-Score

Puell Multiple Z-Score

The Puell Multiple is calculated by dividing the total USD value of Bitcoin issued today (newly mined coins × BTC price) by the 365-day moving average of that daily issuance value. It shows how today's miner revenue compares to the past year's average. Z-score analysis has been conducted to provide traders with a precise tool for identifying market extremes and potential reversions.
This indicator is calibrated on a daily timeframe in order to give precise top and bottom signals for each cycle.



Features

The script compares the Z-score with customizable threshold levels to generate overbought and oversold levels. A Z-score exceeding the upper threshold suggests potential overbought conditions, while a Z-score below the lower threshold may indicate oversold conditions.

This script offers several customizable inputs, enabling traders to tailor the indicator to their preferences. The length determines the lookback period that the Z-score is calculated over. Traders can also adjust the thresholds to define the sensitivity of overbought and oversold conditions.

It has 10 available color schemes to choose from and the background coloring on the chart can be toggled on and off.



Practical Applications
This indicator is designed for traders who focus on identifying cycle extremes and potential mean reversion opportunities. By using Z-score analysis, this tool can be particularly effective for detecting points of overextension in the market, where a reversion to the mean is likely.

Detecting Overbought and Oversold Conditions: The Z-score measures how far the price has deviated from its norm, allowing traders to identify overbought or oversold conditions with precision.

Timing Market Reversals: The indicator provides early signals of potential market reversals by highlighting when the price has moved too far away from its average, helping traders anticipate reversion opportunities.