Standard Deviation



Standard Deviation Interpretation:

Standard deviation measures the volatility of prices. It is often used an relation to some indicators. For example, the Bollinger Bands are calculated from an arithmetic moving average. To plot an upper and a lower band, add and subtract 2 * (standard deviation)

Standard Deviation Calculation:

Ecart Type = square[(from j=1 to n)(close j - Moving Average on n days)2] Bollinger bands are calculated from an arithmetic moving average. To plot an upper and a lower band, add and subtract 2 * (standard deviation)

Standard Deviation Calculation:

Ecart Type = square[(from j=1 to n)(close j - moving average on n days)2]




Return from Standard Deviation to Using Indicators

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