Standard Deviation

Standard Deviation is a statistical measure of volatility. It is usually used not as a separate indicator but as a component of other indicators.


Standard Deviation is mostly used in the stock market to identify the degree of volatility of stock. This indicator is also applied to mutual funds, where it shows how much the return of the fund is deviating from the expected normal returns.


Method of usage:


1.The value of this indicator is usually high if prices change sharply.
2.If the value of this indicator is not high, the prices are stable.
3.Before a significant rise/fall in prices, this indicator is usually low.