Standard Deviation
Liens connexes:
Acceleration / Deceleration Oscillator | Moving Average Convergence / Divergence Standard Deviation |
Standard Deviation
Standard Deviation is designed to measure the market volatility. This indicator describes the range of price fluctuations relative to simple moving average. So, if the value of this indicator is high, the market is volatile, and prices of bars are rather spread relative to the moving average. If the indicator value is low, the market can described as having a low volatility, and prices of bars are rather close to the moving average.Normally, this indicator is used as a constituent of other indicators. Thus, when calculating Bollinger Bands, one has to add the symbol standard deviation value to its moving average.
Calculation
StdDev = SQRT (SUM (CLOSE - SMA (CLOSE, N), N)^2)/NWhere:
SQRT - square root;
SUM (..., N) - sum within N periods;
SMA (..., N) - simple moving average having the period of N;
N - calculation period.
Similar information about indicators you can find in information system of trade platform MetaTrader 4 (Help-> Help Topics [F1] -> Ananlitics -> Technical Indicators).
