Standard deviation (SD) is a statistical measure of volatility, dispersion, or risk in a data set. In trading and investing, standard deviation helps traders understand how much an asset’s price fluctuates relative to its average price over a given period.
Key Concepts of Standard Deviation: 1. Measures Volatility: A high standard deviation means greater price fluctuations, while a low standard deviation indicates stable price movements. 2. Deviation from the Mean: It tells us how far individual data points (e.g., prices) deviate from the average (mean). 3. Used in Trading Indicators: Standard deviation is used in Bollin
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