Standard Deviation
Standard Deviation
Section titled “Standard Deviation”Value of the market volatility measurement. This indicator describes the range of price fluctuations relative to simple moving average.
Interpreting the Indicator
Section titled “Interpreting the Indicator”If the value of the indicator is high, the market is volatile with prices spread relative to the moving average. If the value is low, the market has low volatility with prices close to the moving average.
Use in Other Indicators
Section titled “Use in Other Indicators”The standard deviation value is often used as a component in calculating Bollinger Bands®.
Conclusion
Section titled “Conclusion”The standard deviation indicator helps to understand the market’s volatility and its behavior. By analyzing its value, traders can make informed decisions.