Indicator - Standard Deviation
-
- 0
- 628
- 0
Definition Standard Deviation
Ecart Type=square[(summation(from j=1 to n)(Closej-Moving average on n days)²\n].
Interpretation Standard Deviation
Standard deviation measures the volatility of prices.
It is often used in relation to some indicators. For example, the Bollinger bands are calculated from an arithmetic moving average. To plot an upper and lower band, add and subtract 2 * (standard deviation).
