README
Table of Contents
Here is a compact but comprehensive write-up for the Standard Deviation Indicator suitable for educational publishing on platforms like GitHub, TradingView, or forums:
📊 Standard Deviation Indicator / Indie
Overview
The Standard Deviation (StdDev) indicator measures market volatility by quantifying how much price deviates from its moving average. It helps traders identify periods of high or low volatility, making it valuable for breakout strategies and risk management.
Usage & Strategy
- When to Use: During volatility assessments, trend strength evaluation, or when used with Bollinger Bands.
- Trading Context: High StdDev can indicate breakout potential; low StdDev suggests consolidation.
Formula
StdDev = √(Σ(price - avg(price))² / n)
Indie and Pine use built-in functions to encapsulate this computation.
How to Interpret Values
- Rising StdDev: Increasing volatility, often during trend acceleration.
- Falling StdDev: Consolidation, low trading activity.
- Sudden Spikes: May signal incoming price swings or news-driven events.
Code Comparison
| Feature | Indie v5 | Pine v5 |
|---|---|---|
| Volatility Calculation | StdDev.new(self.close, 20) |
ta.stdev(close, 20) |
| Plot Integration | @plot.line('stddev', color=color.YELLOW) |
plot(stddev, color=color.yellow, title="StdDev") |
| Context Model | Main(self): return plot.Line(...) |
Flat global code |
| Decorators | @indicator, @plot.line |
indicator(), plot() |
Indie v5 Code
#education purpose
indie:lang_version = 5
from indie import indicator, plot, color from indie.algorithms import StdDev
@indicator(‘Standard Deviation’, overlay_main_pane=True) @plot.line(‘stddev’, color=color.YELLOW) def Main(self): stddev = StdDev.new(self.close, 20) return plot.Line(stddev[0])
### Pine Script Code
//education purpose //@version=5 indicator(“Standard Deviation”, overlay=true)
// Define length length = 20
// Calculate Standard Deviation stddev = ta.stdev(close, length)
// Plot Standard Deviation plot(stddev, color=color.yellow, title=”StdDev”) ```
Key Takeaways
- Strengths: Simple, fast, and compatible with other indicators like Bollinger Bands.
- Limitations: Purely statistical—it doesn’t indicate trend direction.
- Ideal For: Measuring market “calm” vs. “explosive” periods.
📜 License
MIT License — Free to use, modify, redistribute, and integrate. Attribution appreciated. Author: TakeProfit Purpose: Educational / open-source community development