MetaStock Standard Deviation Function

by David Jenyns on June 23, 2007

MetaStock Standard Deviation Function
Standard Deviation is simply a statistical measure of volatility. It measures how widely values (e.g. closing prices) are spread from the average (e.g. mean closing price). The more dispersed the data is, the higher the `deviation’ and the higher the volatility. The lower the deviation, the lower the volatility. Often, standard deviation is used to calculate indicators such as Bollinger Bands. It’s often used when trading derivatives, since it provides a good indication of a security’s volatility, which greatly affects the pricing of derivatives.

Share

Previous post:

Next post: