Usage of the Standard Deviation Indicator

The Standard deviation indicator (SD) informs about the volatility of the market. It reflects the average price deviation with respect to the Moving Average.

If the value of SD is too low, a splash of activity can be expected in the market. In this case it is reasonable to set up two entry stop orders, one for buy and another one for sell.

If the value of SD is rather high, most likely the activity will go down. In this case it is better to open sell positions, as the price will go down as a result of the lack of activity in the market.