Standard Deviations

Standard Deviation is an index that measures price volatility, as the difference between average prices. It follows that the indicator will rise upwards when the difference between the current CLOSE price and the average CLOSE price is greater, it will go down in the opposite case. It can be used as a support to determine the phases of euphoria or market stability: we will have peaks in the case of euphoria, while the values will be low in the presence of phases of lateralization of the financial instrument being analyzed. Given the high number of information that often comes from other indicators, Standard Deviation can be useful to get a general picture of the situation. The user has the possibility to configure the indicator as he deems most appropriate, for example by applying it to OPEN prices, or using other types of “Moving Averages”, or finally changing the number of “Moving Averages” periods.