The Crosby Ratio Z-Score is a price-action market cycle indicator that picks out overly bullish or bearish sentiment on both longer and shorter timeframes. It measures the angle of change of a 30-period moving average of price, standardised by Bitcoin's average true range (its volatility). That brings out stretches of exponential moves up or down, which have historically coincided with peaks and bottoms within the cycle.
In the red zone, price has run well ahead of its recent average and sentiment is likely greedy; historically, an area where lower-timeframe traders could consider taking profit. In the green zone, sentiment is likely fearful and Bitcoin may be undervalued against its recent price action; historically, accumulating here has offered a favourable risk to reward. Roughly 5% of Bitcoin's price action falls beyond each zone's first boundary, and the deeper shading marks the outer bound. It works best alongside other metrics, for confluence.
Created by Matt Crosby, who maintains that naming it after himself was a purely technical decision.
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