Indian Shares and Technical Analysis

Standard Deviation is a statistical term that provides the user with a volatility measurement. It is a measurement of how much given values such as closing prices are dispersed from the average of those values.

Standard Deviation can be said to be increasing as the difference between the closes and the average closing price increases. Higher standard deviations are a measure of higher volatility. The nearer the closing prices are to the average price, the lower the standard deviation and therefore lower the volatility and generally, the greater the stability of the market.