[EquisMetaStock Group] Bar Standard Deviation

["formulaprimer" <formulaprimer@xxxxxxxxx>]

For those who use probability and statistics analysis on the markets

"Standard Deviation is a statistical measurement of volatility. It is derived by calculating an x-time period simple moving average of the data item (i.e., the closing price or an indicator); summing the squares of the difference between the data item and its moving average over each of the preceding x-time periods; dividing this sum by x; and then calculating the square root of this result. Standard Deviation is typically used as a component of an indicator, rather than as a stand-alone indicator. For example, Bollinger Bands are calculated by adding a security's Standard Deviation to a moving average.

High Standard Deviation values signify high volatility: the data item being analyzed is deviating from its moving average significantly. Similarly, low Standard Deviation values signify low volatility; the data item is remaining close to its moving average.

Typically, low Standard Deviation values (i.e., low volatility) tend to come before significant upward price changes.

Many analysts agree that major tops are normally accompanied with high volatility and major bottoms are generally calm with low volatility.

Bar Average Standard Deviation

=====================================

Periods:=Input("Periods",1,99,20);
BA:=(H+O+C+L)/4;
BarAvg:=Mov(BA,Periods,S);
Sqrt((Sum(O*O,Periods) + Sum(C*C,PERIODS) + Sum(H*H,Periods) + Sum(L*L,Periods)) / (Periods * 4) - (BarAvg * BarAvg));

{End}






------------------------------------

Yahoo! Groups Links

<*> To visit your group on the web, go to:
    http://groups.yahoo.com/group/equismetastock/

<*> Your email settings:
    Individual Email | Traditional

<*> To change settings online go to:
    http://groups.yahoo.com/group/equismetastock/join
    (Yahoo! ID required)

<*> To change settings via email:
    equismetastock-digest@xxxxxxxxxxxxxxx 
    equismetastock-fullfeatured@xxxxxxxxxxxxxxx

<*> To unsubscribe from this group, send an email to:
    equismetastock-unsubscribe@xxxxxxxxxxxxxxx

<*> Your use of Yahoo! Groups is subject to:
    http://docs.yahoo.com/info/terms/