Charts

Charts

Standard Deviation

The Standard Deviation indicator is a statistical calculation used to measure the variability. In trading this value is known as volatility. A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data points are spread out over a large range of values.

Configuration Options

  • Period: Number of bars to use in the calculations.
  • Field: Price or combination of prices to use as the base for average calculations. Possible values include:
    • Open
    • High
    • Low
    • Close
    • Adjusted Close
    • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
    • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
    • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
    • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
  • Standard Deviations: TBD
  • Moving Average Type: Type of moving average to use in the calculations:
    • Simple
    • Exponential
    • Time Series
    • Triangular
    • Variable
    • VIDYA
    • Weighted
    • Welles Winder
    • Hull
    • Double Exponential
    • Triple Exponential
  • Color Selectors: Colors to use for graph elements.
  • Display Axis Label: Whether to display the most recent value on the Y axis.

Formula

\[ s = \sqrt \frac{\sum (X -\bar X)^2}{(N-1)} \]

where:

  • s = Standard deviation
  • X = Each value in the sample
  • X = Mean of the values
  • N = Number of values (sample size)