Standard Deviation (StdDev) – indicator for MetaTrader 4

0
1017

The Standard Deviation 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.

Recommended MT4/MT5 Brokers

XM Broker

  • Free $50 To Start Trading Instantly! (Withdraw-able Profit)
  • Deposit Bonus up to $5,000
  • Unlimited Loyalty Program
  • Award Winning Forex Broker
  • Additional Exclusive Bonuses Throughout The Year

XM broker

>> Sign Up for XM Broker Account here <<

FBS Broker

  • Trade 100 Bonus: Free $100 to kickstart your trading journey!
  • 100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
  • Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
  • ‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
  • Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.

fbs broker

>> Sign Up for FBS Broker Account here <<

 

Upgrade

(Free MT4 Indicators Download)

Click here below to download:

Standard Deviation (StdDev) – indicator for MetaTrader 4

Get Smarter About Forex Trading Using Indicators

Join 100,000+ subscribers and get our 5 min daily newsletter on what matters in forex.

We do not sell or share your information with anyone.

LEAVE A REPLY

Please enter your comment!
Please enter your name here