Standard Deviations

The "Standard Deviations" indicator merges the principles of volume-weighted price movement and volatility measurement to provide traders with an advanced tool for analyzing market dynamics.

This indicator utilizes the Volume Weighted Moving Average (VWMA) to derive a more accurately weighted average price, taking into account both price changes and associated trading volume.


On this weighted average price, the indicator then applies a standard deviation calculation to gauge the level of price volatility.

Significant deviations from the VWMA may indicate market euphoria or panic, helping traders identify potentially favorable entry and exit points.