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Apply a Moving Standard Deviation Indicator

Standard deviation is a statistical term that provides a good indication of volatility. It measures how widely values (for example, closing prices) are dispersed from the average. Dispersion is the difference between the actual value (closing price) and the average value (mean closing price). The larger the difference between the closing prices and the average price, the higher the standard deviation will be and the higher the volatility. The nearer the closing prices are to the average price, the lower the standard deviation and the lower the volatility.

To apply a Moving Standard Deviation Indicator

  1. From within a chart, from the Edit menu select Studies.
  2. Choose Moving Standard Deviation and click Add to add the study to the Applied Studies group.
  3. Complete parameters as necessary.

Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.

Important Disclosures