**Overview**

**Standard deviation** is a statistical term that measures the amount of variability or dispersion around an average. **Standard deviation** is also a measure of volatility. Generally speaking, dispersion is the difference between the actual value and the average value. The larger this dispersion or variability is, the higher the **S****tandard deviation**. The smaller this dispersion or variability is, the lower the **S****tandard deviation**. Chartists can use the **S****tandard deviation** to measure expected risk and determine the significance of certain price movements.

**Description**

The **Standard deviation** is a statistical measure of volatility. These values provide chartists with an estimate for expected price movements. Price moves greater than the **Standard deviation** show above average strength or weakness. The **Standard deviation** is also used with other indicators, such as Bollinger Bands. These bands are set 2 standard deviations above and below a moving average. Moves that exceed the bands are deemed significant enough to warrant attention. As with all indicators, the** Standard deviation** should be used in conjunction with other analysis tools, such as momentum oscillators or chart patterns.

To find out more about this indicator and it`s trading signals click here.

**Settings in the chart**

**Settings in Strategies****Standard Deviation** can be used both separately and together with other indicators in the Strategy Builder.