How to open an FBS account?
Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to activate Level Up Bonus?
Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.
Standard deviation is an indicator that measures deviations of the price from the moving average. In other words, it’s the gauge of volatility.
How to implement indicator
The SD is included in the default indicator set of MetaTrader. Go to “Insert”, find “Indicators” and then “Trend” – and you will see the Standard Deviation.
The default period is 20, and it is applied as default to ‘Close’ (closing price of each bar). If you increase the period, the indicator’s line will be much smoother and produce extremely high or low readings far less often. If you decrease the period, the SD line will reach extreme highs and lows more frequently. This way, you will get more trade signals. At the same time, more of these signals will be false. As a result, you may need to experiment and adjust the indicator’s settings so that they would suit specific trade instrument and volatility. In general, the standard setting of 20 is considered most reliable.
How to interpret standard deviation
The SD shows the scale of price changes relating to the Moving Average. If the indicator value increases, the market is volatile and the price swings are rather dispersed relative to the moving average.
If the indicator value is small, it means that the market volatility is low and the price stays close to the moving average.
Traders need to know that periods of market activity and calm usually alternate each other, and the price tends to return to the average level every time:
- The rise of the SD line means high volatility because the closing price and the average closing price significantly differ. Extreme SD highs warn that the current activity will soon calm down and will be followed by a period of consolidation.
- The decline of the SD line means low volatility, the market is inactive (prices are stable). Extreme SD lows may signal the forthcoming market move.
In addition, the current value of the Standard Deviation can be used to estimate the significance of a price movement. A move greater than one standard deviation would show above average strength or weakness of the market, depending on the direction of the move.
The SD is often used as a part of other more sophisticated indicators, for example, the Bollinger Bands. These bands are set 2 standard deviations above and below a moving average. Read more about the Bollinger Bands.
All in all, you the SD indicator can help you to do the following things:
- Pick important market tops or bottoms (you need to look for highly volatile prices that have spiked too far from the mean).
- Target entries within trends (if the trend is strong you can target entry at the mean price, i.e. when the SD is low).
- If prices are trading in a narrow range and the suddenly high standard deviation pushes prices away from the mean, you can trade with the break.
The Standard Deviation is extremely easy to understand. It shows whether volatility is high or low. This information will help you enter the market at the right time.
2022-01-31 • Updated
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