Standard deviation is an indicator that measures the size of recent price movements of an asset, to determine the current volatility or predict how volatile the price may be in future.
It can help you decide whether the volatility of the price is likely to increase or decrease as normally big price moves followed by small price moves and vice versa.
Strategy:
1- Recognise the overall trend.
2- Look for the volatility with price movements against the overall trend.
3- Open a position in the direction of the trend after the high volatility happens.
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