What is standard deviation?Standard Deviation
A statistic for how far data spreads from its average; the bigger the swings, the bigger the standard deviation.
Learn “standard deviation” in an animated lesson
- Trend IndicatorsBollinger Bands
The middle band is the 20-day moving average and the outer bands sit two standard deviations away: the bands "breathe" with volatility.
- Volume & Volatility IndicatorsDonchian and Keltner Channels
One uses the highest high and lowest low, the other uses ATR: two channels, two kinds of breakout logic.
- Volume & Volatility IndicatorsHistorical Volatility: Volatility Clusters
Turn how spread out the last N days' moves were into an annualized percentage. Calm is often followed by a storm, but it doesn't tell you the direction.
Related terms
See how “standard deviation” works for yourself with an animation you can drag and play.
Go to “Bollinger Bands”