Our custom developed Forex Standard Deviation Normalized Indicator. Standard deviation is the statistical measure of market volatility, measuring how widely prices are dispersed from the average price. If prices trade in a narrow trading range, the standard deviation will return a low value that indicates low volatility. Conversely, if prices swing wildly up and down, then standard deviation returns a high value that indicates high volatility.
How this indicator works
- Standard deviation rises as prices become more volatile. As price action calms, standard deviation heads lower.
- Price moves with increased standard deviation show above average strength or weakness.
- Market tops that are accompanied by increased volatility over short periods of time indicate nervous and indecisive traders. Market tops with decreasing volatility over long time frames indicate maturing bull markets.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
The EUR/GBP 15 minute chart below displays the Forex Standard Deviation Normalized Indicator in action.
Copy and paste the Forex Standard Deviation Normalized Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete