Glossary › standard deviation
Trading glossary · indicators
standard deviation
A number that shows how scattered prices are around their average. Bigger means prices jump around more.
The fuller meaning
A statistical measure of dispersion around the mean. Bollinger Bands sit 2 standard deviations above and below a 20-period SMA, widening when volatility rises; in strategy statistics it measures how widely trade results vary around the average.
standard deviation.
Related words
61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence