Most people are familiar with stock market line graphs that track the progress of a particular stock’s value, much like the image below:
The ZCode Oscillator is a successful tool for sports investing that serves a similar purpose to a stock market graph. The oscillator is a visual display of a team’s performance, which helps explain and predict performance trends. The ZCode Oscillator helps make accurate predictions when used properly.
You can access the Zcode for MLB and other sports here http://zcodesystem.com/mlb_oscillator The ZCode is a key parameter in sports predictions due to its simplicity. The oscillator line for a given team moves up and down with every win and loss.
The progress of a given team in the ZCode Oscillator depends exclusively on their performance. While the success and failure of a stock is dictated by volatile external factors (economy, politics, wars etc.), current trends in sports investing can often be explained through visual analysis because internal factors dictate performance.
The performance of star players, injuries, and chemistry can directly impact the success of a team over time. If a roster must deal with injuries, poor performance, coaching changes, or a difficult schedule, the team is less likely to succeed. If a team is playing well, they can over-perform for a stretch of time.
Because trends tend to last for multiple games, the oscillator can successfully predict outcomes based on visual analysis of recent performance.
The following example displays how the works:
The first step to using the oscillator is identifying the Delta number, which represents the overall difference in performance between the two teams through the season. Before considering the chart, the Delta number can give an indication as to whether there is value in a given line.
After identifying the gap between the two teams, we consider each team’s chart. The winning performance peaks represent resistance levels for a team, while losing valleys form support levels. Resistance and support levels are key to interpreting the oscillator correctly.
Resistance peaks represent the highest levels of success a team has achieved, and can sometimes depict a ceiling for their performance. Support levels represent a crucial point where a team desperately fights off a freefall effect from reaching a new low. You can expect a team to perform better as they hit support levels, but fall short at their resistance points. If a team breaks through their support levels, they are in a deep slump and may continue to lose.
If a team breaks through their resistance levels, they set a new ceiling for their successes. In this way, the oscillator helps predict the beginning and end of performance streaks. Essentially, this is the basic value to the ZCode.