Forex Standard Deviation StdDev Indicator
Forex Standard Deviation StdDev Indicator (StdDev) measures the market volatility. This indicator describes the price standard deviation value relative to the Moving Average.
The higher the Standard Deviation is, the more instable (volatile) the market is, i.e., bars prices are rather dispersed relative to the moving average. Opposite, the lower the deviations is, the more immovable the market is, i.e., the bars prices are approaching to the moving average very much. It is known, however, that the market dynamics consists in interchange of quiet periods and activity spikes.
So, the approach to this indicator is simple:
- if the indicator value is too low (i.e., if the market is completely calm), it would be reasonable to expect the activity spike soon;
- on the contrary, if the indicator is extremely high, this means that the activity will slow down soon.
Calculation
StdDev (i) = SQRT (AMOUNT (j = i – N, i) / N)
AMOUNT (j = i – N, i) = SUM ((ApPRICE (j) – MA (ApPRICE (i), N, i)) ^ 2)
where:
- StdDev (i) — Standard Deviation of the current bar;
- SQRT — square root;
- AMOUNT(j = i – N, i) — sum of squares from j = i – N till i;
- N — smoothing period;
- ApPRICE (j) — the applied price of the j-th bar;
- MA (ApPRICE (i), N, i) — any moving average of the current bar for N periods;
- ApPRICE (i) — the applied price of the current bar.
What does Forex Indicator mean?
A forex indicator is a statistical tool that currency traders use to make judgements about the direction of a currency pair’s price action. Forex indicators come in many types, including leading indicators, lagging indicators, confirming indicators and so on. Popular forex indicators include moving averages, relative strength index (RSI) and average true range (ATR). A forex trader must choose the indicators that fit his or her trading strategy.
How to install Forex Standard Deviation StdDev Indicator?
- Download Forex Standard Deviation StdDev Indicator.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex indicator
- Load indicator on your chart
How to uninstall Forex Standard Deviation StdDev Indicator?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
