Nice explanation especially as your a noviceI am a beginner but from what I am reading and learning, I can tell you the following:
Traders use it to put current price action into context by establishing a periodic closing price’s relation to an average or mean value. This is done by executing these basic tasks:
- Defining a series of closing prices according to time or another periodicity
- Calculating a mean value for the defined data set
- Measuring the dispersion, or difference between the closing price and the mean value
I have been using standard deviations a lot,, it helps to prevent extreme drawdown scenarios.If you have any experience in trading and markets then you know that a sudden spike in volatility can close out a soon-to-be profitable trade as a loss. That's where standard deviation is useful - it establishes an inherent volatility of a currency pair before an order is ever placed. Standard deviation is a term used in statistics to measure the variance of a dataset from its mean value. If we will speak aboutmeaning of deviation in forex, then it's literally a volatility measurement. Traders use it to put current price into context by establishing a periodic closing price's relation to an average or mean value.
The difference between an expected value and the actual outcome or result.Can anyone explain what is deviation in forex?
The deviation refers to the difference between an expected value or and the actual outcome or result.Can anyone explain what is deviation in forex?
Deviation refers to the difference between an expected value or forecast and the actual outcome or result. It measures the extent to which the actual data deviates from what was anticipated, impacting market perceptions and potentially influencing trading decisions.Can anyone explain what is deviation in forex?