Anyone know about Standard Deviations?

Discussion in 'Trading' started by zz, Sep 6, 2001.

  1. zz


    Does anyone know how to apply standard deviations to get support and resistance #'s for stocks and/or futures? And what the SIMPLE formula is? I know they mean something like theres a 66% chance of this number holding on 1 S.D. and a 97% chance on 2 S.D. etc... Any help or insight would be greatly appreciated.
  2. Dustin


    zz what software are you using? If you have qcharts I may be able to help you.
  3. vitajex


    This site has a basic introduction to the concept
    of a normal distribution.

    This site has a "z table" calculator, where you enter the
    number of deviations from the mean, and it gives you the area
    (percentage) under the curve.

    As far as support and resistance goes, you might want
    to try Bollinger bands. Many traders use them, including
    quite a few on this board. A standard setting of 20,2 for
    BB would have a basis line that is the 20 period simple
    moving average. The outer lines would be +/- 2 standard
    deviations from this line. More info about BB here: