Std Deviation - page 9

[TRADERSM]

mr.mladen please add "0 LEVEL LINE " without changing its settings its possible?

deviationsmladen.mq4

[Mladen Rakic]

TRADERSM:
mr.mladen please add "0 LEVEL LINE " without changing its settings its possible? deviationsmladen.mq4

TRADERSM

Here is a modernized (more user friendly - now you do not have to remember what number means what) version with that level added : deviationsmladen_1_01.mq4

[Sergey Golubev]

StdDev Custom Histogram Smoothing - indicator for MetaTrader 5

The iStdDev (Standard Deviation, StdDev) indicator is smoothed with a specified period (' period of averaging ') and a specified type of averaging (' type of smoothing '). The indicator is displayed in the form of a colored histogram: the current bar is compared with the previous one.

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From the following book:

Technical Analysis from A to Z by S.B.Achelis.

Overview

Standard Deviation is a statistical measure of volatility. Standard Deviation is typically used as a component of other indicators, rather than as a stand-alone indicator. For example, Bollinger Bands are calculated by adding a security's Standard Deviation to a moving average.

Interpretation

High Standard Deviation values occur when the data item being analyzed (e.g., prices or an indicator) is changing dramatically. Similarly, low Standard Deviation values occur when prices are stable.

Many analysts feel that major tops are accompanied with high volatility as investors struggle with both euphoria and fear. Major bottoms are expected to be calmer as investors have few expectations of profits.

Calculation

Standard Deviation is derived by calculating an n-period simple moving average of the data item (i.e., the closing price or an indicator), summing the squares of the difference between the data item and its moving average over each of the preceding n-time periods, dividing this sum by n, and then calculating the square root of this result.

[Sergey Golubev]

Learn how to design a trading system by Standard Deviation

Welcome to a new article in our series in which we learn through this series how we can create a trading system by the most popular technical indicators. We will learn in this new article a new tool in detail that can be used to enhance our trading and we will learn how to create a trading system based on the basic concept behind it. This new indicator is the Standard Deviation indicator. We will cover this indicator in detail through the following topics:

1. Standard Deviation definition
2. Standard Deviation strategy
3. Standard Deviation strategy blueprint
4. Standard Deviation trading system
5. Conclusion