- Files
- jaguar1637
- Very interesting indicator Bollinger Bands over Standard deviation

This indicator "BBoverSTD" for the Bollinger Bands over Standard deviation, can be used to analyse volatility

Volatility. A word that generates panic for investors as well as faster heartbeats for traders. How many times haven’t you tried before to trade only trending markets and catch the momentum ?

According to InvestorWords.com, volatility is ** the relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.** So volatility is measured by standard deviation (noted with greek lowercase sigma letter). And what’s the most popular indicator based on standard deviation ? You guessed, the famous Bollinger Bands. Bollinger Bands (BB) is one of the first indicators that you have learned to use in trading.