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RT's,
I have one of those Statistics 101 questions(which I never took) about the
use and calculation of Standard Deviation. In my SuperCharts software there
is a StdDev function, it allows you to input variables for price and
length. I have checked out the definition of Standard Deviation and I know
it’s something like the Square Root of the variance. Now I have seen or
read many times where the designation for Standard Deviations is a set
amount in relationship to something like price such as, 1 Standard
Deviation, 2 Standard Deviations, 3 Standard Deviations... what I don't get
is, is how this set amount is derived. Now if it is just the value of the
last calculation(after a series of calculations) extended back in time I'd
like to know that, otherwise can anyone tell me how it works. Thanks.
Brent
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