LogoLogo
  • Welcome to AMP Futures (USA) Help
  • Trading Platforms
    • Quantower
      • Shortcuts
        • Overview
      • Getting Started
        • What's new
        • Installation
        • First start
        • Add Exchanges-Symbols
          • Add New Micro Crude Oil (CME) Symbol - MCLE
        • Platform update
        • Backup & restore manager
        • Reset settings to default
        • You have found a bug. What’s next?
      • General Settings
        • Main Toolbar
        • Workspaces
        • Single Panel
        • Link panels
        • Binds
        • Group of panels
        • Templates
        • Set as Default
        • Symbols lookup
        • Table management
        • Setup Actions & Advanced filters
        • Alerts
        • General settings
      • Data-Feed Connections
        • Connection to CQG (AMP Futures)
          • Errors with CQG
      • Analytics Panels
        • Chart
          • Chart Overview
          • Chart Types
            • Tick chart
            • Time aggregation
            • Renko
            • Heiken Ashi
            • Kagi
            • Points & Figures
            • Range bars
            • Line break
            • Volume Bars
            • Reversal Bars
          • Chart Settings
          • Chart Trading
          • Chart overlays
          • Technical indicators
            • Channels
              • Donchian Channel
              • High Low Indicator
              • Round Numbers
              • Highest High
              • Lowest Low
              • Bollinger Bands
              • Bollinger Bands Flat
              • Price Channel
              • Keltner Channel
              • Moving Average Envelope
            • Moving averages
              • Exponential Moving Average
              • FYL Indicator
              • Linearly Weighted Moving Average
              • McGinley Dynamic Indicator
              • Modified Moving Average Indicator
              • Pivot Point Moving Average Indicator
              • Regression Line Indicator
              • Simple Moving Average Indicator
              • Smoothed Moving Average Indicator
              • Guppy Multiple Moving Average Indicator
              • Trend Breakout System Indicator
              • Triple Exponential Moving Average Indicator
            • Oscillators
              • Aroon Indicator
              • Moving Average Convergence/Divergence
              • Awesome Oscillator
              • Accelerator Oscillator
              • %R Larry Williams
              • Momentum
              • Rate of Change
              • Relative Strength Index (RSI) Indicator
              • Commodity Channel Index
            • Trend
              • Average Directional Movement Index (ADX) Indicator
              • Ichimoku Cloud Indicator
              • Directional Movement Index (DMI) Indicator
              • ZigZag
            • Volatility
              • Average True Range
              • Standard deviation
            • Volume
              • Delta Flow
              • Delta Rotation
              • Level2 indicator
          • Drawing Tools
          • Volume Analysis Tools | Volume Profiles | Footprint chart | VWAP
            • Cluster chart
            • Volume profiles
            • Time statistics
            • Time histogram
            • Historical Time & Sales
          • OHLC
          • Power Trades
          • VWAP | Volume Weighted Average Price
          • Anchored VWAP
        • Watchlist
        • Time & Sales
        • Price Statistic
        • DOM Surface
        • Option Analytics
        • TPO Profile Chart
      • Trading Panels
        • Multiple Order Entry
        • Order Entry
          • Algo Order Types
          • OCO (Multi-Level)
          • OCO (Post Fill)
          • Order Types
        • DOM Trader
          • How to setup DOM for Scalping
        • Market depth
        • Trading simulator
        • Market Replay
      • Portfolio Panels
        • Positions
        • Working Orders
        • Trades
        • Orders History
        • Synthetic Symbols
        • Historical Symbols
      • Information Panels
        • Account info
        • Symbol Info
        • Event Log
        • RSS
        • Reports
      • Miscellaneous
        • Symbol Mapping Manager
        • Live Support
        • Market Heat map
        • Stat matrix
        • Exchange times
        • Quote Board
        • Browser
        • Excel and RTD function
          • Changing RTD Throttle Interval in Excel
        • Quantower Telegram Bot
      • Quantower Algo
        • Introduction
        • Install for Visual Studio
        • Strategy runner
        • Simple Indicator
        • Simple strategy
        • Input Parameters
        • Built-In indicators access
        • Custom indicators access
        • Level2 data
        • Access Volume analysis data from indicators
        • Indicator with custom painting (GDI)
        • Access Chart from indicator
        • Using markers with indicators
        • Using Clouds in Indicator
        • Adding a custom indicator to Watchlist
        • Downloading history
        • Access to trading portfolio
        • Trading operations
        • Example: Simple Moving Average
        • Access to advanced aggregations
        • Access to symbol/account additional fields
      • Customization
        • Localization
      • FAQ
        • General Errors
Powered by GitBook
On this page
  • Description
  • Formula
  • Most useful cases

Was this helpful?

  1. Trading Platforms
  2. Quantower
  3. Analytics Panels
  4. Chart
  5. Technical indicators
  6. Volatility

Standard deviation

PreviousAverage True RangeNextVolume

Last updated 4 years ago

Was this helpful?

Description

Standart deviation indicator statisticy measures the dispersion of a price relative to its mean(mathemetical expectation) and is calculated as the square root of the variance. It is widely used in finance and trading regardless of asset class or market. For example, if trader calculates a standard deviation of his performance report as the result he will receive the measurement of volatility of his balance and equity, the higher STD means the he can expect bigger drawdown.

In case of price movement, higher STD means higher volatility of an instrument, for example if we compare two assets, the asset with higher standard deviation will be more risky for an investment.

Formula

Where: N - period of calculation(number of observations) x - price value

Most useful cases

  • Volatility measurement - the most useful case of STD usage is to determine a statistical volatility, understanding of this value is very useful to find best positions of potential stop loss and take profit levels. It protects existing positions of small price fluctuations and random breakout of levels.

  • Divergence/Convergence - Divergence/Convergence pattern is a form of price action when new high(low) of the price not confirmed with a new high of STD. This is a very good approach to find a weakness of existing trend.

​