1. For Windows or Linux - Press Ctrl+D
2. For MacOS - Press Cmd+D
3. For iPhone (Safari) - Touch and hold, then tap Add Bookmark
4. For Google Chrome - Press 3 dots on top right, then press the star sign
Enter your set of numbers in the input field. Numbers must be separated by commas.
Press Enter on the keyboard or on the arrow to the right of the input field.
In the pop-up window, select “Find the Standard Deviation”. You can also use the search.
Standard deviation (STD, STDev) is a very common scatter indicator in descriptive statistics. But, because technical analysis is akin to statistics, this indicator can (and should) be used in technical analysis to detect the degree of dispersion of the price of the analyzed instrument over time. It is designated by the Greek symbol Sigma "σ".
Understanding the essence of the standard deviation is possible with an understanding of the basics of descriptive statistics. For example, we have 2 samples in which the arithmetic average is the same and equal to 3. It would seem that the same average makes these two samples the same. But no! Let's look at the possible data options for these two samples: 1, 2, 3, 4, 5 and -235, -103, 3, 100, 250 Obviously, the scatter (or scattering, or, in our case, volatility) is much larger in the second sample. Therefore, despite the fact that these two samples have the same average (equal to 3), they are completely different due to the fact that the second sample has randomly and strongly scattered data around the center, and the first one is concentrated near the center and ordered.
But if we need to quickly make it clear about such a phenomenon, we will not explain, as in the paragraph above, but simply say that the second sample has a very large standard deviation, and the first - a very small one. So, in the second sample, the standard deviation is 186, and in the first it is 1.6. The difference is significant.
The standard deviation is a classic indicator of variability from descriptive statistics. It will help you see how the volatility of the instrument changes over time. In simple terms, the standard deviation shows how much the price of the instrument varies over time. That is, the larger this indicator, the stronger the volatility or variability of a number of values. The standard deviation can and should be used to analyze sets of values, since two sets with seemingly the same average can turn out to be completely different in the scatter of values.