Description

• This indicator measures the wide dispersion of closing and opening prices from the average price

Interpretation

• The higher the difference between closing price and average price, the higher the standard deviation
• The lower the difference between closing price and average price, the lower the standard deviation

Default Parameters Used/Inputs

• Data Line
• Bars

Returns/Output

Standard deviation of the stock

Formula

StdDev(I[X],R)=Sqrt(Cum(Sqr(SMA(I[X],R)-I[X-R]),R)/Bars)
I[X] indicates input line and SMA indicates Simple Moving Average