Standard Deviation VWAP Levels As Value Area – Trading Research

Standard Deviation is a measure of the dispersion of a set of data from its mean.

The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance. This concept applies to many aspects of Auction Market Theory.

The first standard deviation levels +1.0SD (VAH) and -1.0SD (VAL) applies to the VWAP which represents the value area of the developing VWAP. Close levels will be handled in the same manner as VAs of TPOs or Volume profiles.

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