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Standard Deviation (SMD)
Standard deviation (SMD) is statistical measure of volatility.
Standard deviation is calculated by formula:
Standard deviation is calculated for closing prices. For average value is used simple moving average (SMA). Default value for parameter n is 21.
Standard Deviation (SMD)
Interpretation
Standard deviation is not indicator which is used for creating buying and selling signals. It is used for calculation of another indicator in technical analysis: bollinger bands.
Example
Open chart for google with standard deviation indicator.