(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:

We are here to help. Just let us know what you need.

We work extremely hard to keep things positive in our community.

We do not tolerate rude behavior, trolling, or vendors advertising in posts.

We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.

We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple.

Does anyone know if there is a "Moving Standard Deviation" indicator for Ninjatrader? I've done an advanced search on this and found nothing in the forum. Thanks

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

Moving Standard Deviation
Indicator Type: Standalone
Standard deviation is a statistical term that provides a good indication of volatility. It measures how widely values (closing prices for instance) 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 the higher the volatility. The closer the closing prices are to the average price, the lower the standard deviation and the lower the volatility.
Calculation
The steps for calculating a 20-period standard deviation are as follows:
Calculate the simple average (mean) of the closing price. i.e., Sum the last 20 closing prices and divide by 20.
For each period, subtract the average closing price from the actual closing price. This gives us the deviation for each period.
Square each period's deviation.
Sum the squared deviations.
Divide the sum of the squared deviations by the number of periods (20 in our example below).
The standard deviation is then equal to the square root of that number.
Standard Deviation Table
The 20-period standard deviation for the data above is 6.787. Note that this is the "full population" version of the Standard Deviation. There is a different kind of Standard Deviation calculation that is used when you are taking a statistical sample of a population, but that version is not used in technical analysis since all of the data points are known.
Parameters
Period (20) - the number of bars on the chart

Normally you see something like that in plotting Bollinger Bands, which are a certain number of sd's (usually 2) above and below an MA. But you can just plot the standard deviation itself as an indicator below price.

It's a built-in Ninja indicator, StdDev. (They don't call it "moving" because, well, it's a std dev from a moving average, and it moves along with the MA. ) Just set the period, in this case it was 20.

Here's what you get. On the price panel I'm plotting a 20 SMA with Bollinger Bands at 1 standard dev above and below the MA. In the panel below is the StdDev indicator with period = 20.

Either way, it's showing variations in volatility based on how far price deviates from an average.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Bob.

The following 2 users say Thank You to bobwest for this post:

BTW, I would venture the most popular indicator setup for SD's is VWAP +/- 2 SD. At least that's what I like and see a lot of others using.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.

If you want to support our community, become an Elite Member.

The following user says Thank You to Big Mike for this post:

Yeah, that's both simple and direct: how far has price gotten from a very meaningful benchmark that big traders pay attention to.

MA's may be useful, but they are a little arbitrary, in the sense that you choose the MA period and the timeframe (bar size) of the chart, so your MA depends on your charting choices. Everyone sees the same VWAP, and it arguably best represents the day's current price level on the basis of cumulative trading volume and price.

Before re-inventing the wheel: The indicator that you are looking for is called Bollinger's %B.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Standard configuration - as shown - is +/- 2 SD around a 20 period SMA.
Bollinger himself uses a 0/100 scaling instead of 80/20 (because in relation to 2 SDs 80%/20% don't really make much sense).
He just wants to know how much of +/- 2 SDs are maxed out.

Last edited by choke35; August 20th, 2015 at 07:57 PM.

The following user says Thank You to choke35 for this post: