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    It measures how widely values (closing prices) are dispersed from the average.

    Dispersion is the difference between the actual value (c

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    In forex trading most new traders don’t understand the concept of standard deviation.

    However if you understand it, you can gain greater insight into price movement and a huge edge in your quest for profits.

    Let’s look at standard deviation in greater detail.

    Standard deviation may seem a bit confusing at first, but it’s totally logical.

    Let’s do the technical bit first and then look at why it is so important at the end of this article.

    What is it?

    Standard deviation is a statistical term that provides an indication of the volatility of any price and that includes forex prices.

    It measures how widely values (closing prices) are dispersed from the average.

    Dispersion is the difference between the actual value (cl

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    to price movement and a huge edge in your quest for profits.

    Let’s look at standard deviation in greater detail.

    Standard deviation may seem a bit confusing at first, but it’s totally logical.

    Let’s do the technical bit first and then look at why it is so important at the end of this article.

    What is it?

    Standard deviation is a statistical term that provides an indication of the volatility of any price and that includes forex prices.

    It measures how widely values (closing prices) are dispersed from the average.

    Dispersion is the difference between the actual value (c

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    bit confusing at first, but it’s totally logical.

    Let’s do the technical bit first and then look at why it is so important at the end of this article.

    What is it?

    Standard deviation is a statistical term that provides an indication of the volatility of any price and that includes forex prices.

    It measures how widely values (closing prices) are dispersed from the average.

    Dispersion is the difference between the actual value (c

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    le.

    What is it?

    Standard deviation is a statistical term that provides an indication of the volatility of any price and that includes forex prices.

    It measures how widely values (closing prices) are dispersed from the average.

    Dispersion is the difference between the actual value (c

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    ices.

    It measures how widely values (closing prices) are dispersed from the average.

    Dispersion is the difference between the actual value (closing price) and the average value (mean closing price).

    The larger the difference between the closing prices and the average price, the higher the standard deviation will be and therefore the volatility of the market.

    The closer the closing prices are to the average mean price, the lower the standard deviation and the volatility of the currency is.

    It is calculated by taking the square root of the variance, the average of the squared deviations from the mean.

    High Standard Deviation values occur when the data item being analyzed is changing dramatically.

    On the other hand, low

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