Standard Deviation Formula
The standard deviation formula is used to indicate volatility. It calculates the difference between values like the close price and their moving average. A higher standard deviation indicates higher volatility.
Chart.DataManipulator.FinancialFormula( FinancialFormula.StandardDeviation, "Period", "High:Low:Close", " StdDev")
This formula takes one required parameter.
- Period for calculating the moving average for the standard deviation.
This formula takes one input Y value.
- Price for which the standard deviation is calculated.
This formula outputs one Y value.
- Standard deviation.
The following example takes input from Series1's Y value for the close price (Series1:Y4) and outputs the standard deviation on Series3 (Series3:Y). It uses a period of 15 days to calculate the moving average.