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Descriptive Statistics [Mean + Std Dev Bands]
This indicator models market structure using a parametric statistical approach based on the mean and standard deviation. It is designed to measure price volatility and deviation from average market behavior.
It does not predict direction; instead, it describes how far price deviates from its statistical or arithmetic mean over a defined sample of data.
What it shows?
1. Mean: The average price level, representing the central equilibrium of the dataset.
2. Standard Deviation (σ): Measures how dispersed price is around the mean.
3. ±1σ Bands: Normal market variation zone (typical price movement).
4. ±2σ Bands: Strong deviation zone (extended moves).
5. ±3σ Bands: Extreme statistical events (rare market conditions).
6. You may notice the one of (±1σ Bands) bands deviate more than the other especially during trendy market conditions. It is easy spot can can be good for daily directional bias.
How it works
The indicator collects price data using either:
1. Reset Mode: Builds a new dataset each session (Daily, Weekly, Monthly, or chart timeframe).
2. Length Mode: Uses a rolling window of the last N candles.
It then calculates the mean and standard deviation from the selected dataset to construct dynamic volatility bands.
How to use it
1. Price near the Mean → equilibrium / fair value zone.
2. Price within ±1σ → normal market behavior.
3. Price between ±1σ and ±2σ → strong momentum or expansion.
4. Price beyond ±2σ or ±3σ → statistically extreme conditions (overextension or volatility spikes).
Key concept
This tool does not forecast price direction. It provides a volatility-based distribution model, helping traders understand how stretched or compressed price is relative to its average behavior.
⚠️ Note
This indicator is for educational and analytical purposes only and should not be used as standalone trading advice.
Author: TUGUME WILLIAM MUTARA
It does not predict direction; instead, it describes how far price deviates from its statistical or arithmetic mean over a defined sample of data.
What it shows?
1. Mean: The average price level, representing the central equilibrium of the dataset.
2. Standard Deviation (σ): Measures how dispersed price is around the mean.
3. ±1σ Bands: Normal market variation zone (typical price movement).
4. ±2σ Bands: Strong deviation zone (extended moves).
5. ±3σ Bands: Extreme statistical events (rare market conditions).
6. You may notice the one of (±1σ Bands) bands deviate more than the other especially during trendy market conditions. It is easy spot can can be good for daily directional bias.
How it works
The indicator collects price data using either:
1. Reset Mode: Builds a new dataset each session (Daily, Weekly, Monthly, or chart timeframe).
2. Length Mode: Uses a rolling window of the last N candles.
It then calculates the mean and standard deviation from the selected dataset to construct dynamic volatility bands.
How to use it
1. Price near the Mean → equilibrium / fair value zone.
2. Price within ±1σ → normal market behavior.
3. Price between ±1σ and ±2σ → strong momentum or expansion.
4. Price beyond ±2σ or ±3σ → statistically extreme conditions (overextension or volatility spikes).
Key concept
This tool does not forecast price direction. It provides a volatility-based distribution model, helping traders understand how stretched or compressed price is relative to its average behavior.
⚠️ Note
This indicator is for educational and analytical purposes only and should not be used as standalone trading advice.
Author: TUGUME WILLIAM MUTARA
סקריפט קוד פתוח
ברוח האמיתית של TradingView, יוצר הסקריפט הזה הפך אותו לקוד פתוח, כך שסוחרים יוכלו לעיין בו ולאמת את פעולתו. כל הכבוד למחבר! אמנם ניתן להשתמש בו בחינם, אך זכור כי פרסום חוזר של הקוד כפוף ל־כללי הבית שלנו.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
סקריפט קוד פתוח
ברוח האמיתית של TradingView, יוצר הסקריפט הזה הפך אותו לקוד פתוח, כך שסוחרים יוכלו לעיין בו ולאמת את פעולתו. כל הכבוד למחבר! אמנם ניתן להשתמש בו בחינם, אך זכור כי פרסום חוזר של הקוד כפוף ל־כללי הבית שלנו.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.