by Ahmad Hassam Standard deviation is the measure of the spread of a set of number. The larger the difference between the closing price and the average price, the higher the standard deviation and the volatility of the currency pair. When the markets are range bound 95% of the recent closing prices are expected to be within the two standard deviations of the currency pair. In other words, in a range bound market, if the price pops above or below the Bollinger Bands, it does not belong there.
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