Stock Analysis Guide

RSI + z-score stock analysis for reversal setups

Cipher Stock uses RSI(14) and z-score(20) as complementary signals. Together they estimate momentum exhaustion and statistical stretch, helping traders spot cleaner overbought and oversold conditions.

RSI: momentum speed, not value

RSI tracks the pace of price moves. Low RSI can signal selling pressure, while high RSI can signal buying pressure exhaustion. But RSI alone does not measure how statistically unusual that move is.

Z-score: distance from normal behavior

Z-score measures how far price deviates from its recent mean in standard deviation units. It adds context: a value below -1 or above +1 can signal unusual extension relative to recent behavior.

Why combine RSI and z-score

Cipher Stock combines these signals to score reversal potential rather than firing alerts on one indicator crossover.