Standard deviation in trading: when theory turns into money 💰

gaslight_gasfeez · 2025-11-29T02:06:13+00:00

Most traders rely on charts without understanding them. To profit, one must recognize price movements using Standard Deviation (STDV) as a measure of volatility. Key zones for profit include 2-2.5 STDV for reversals and 4 STDV for extreme volatility. Learning to identify market signals effectively can lead to informed trading decisions and avoid blindly clicking.

gaslight_gasfeez

2025-11-29 02:06:13

Abstract generation in progress

Most traders look at charts like a mantra - they just believe without understanding. To earn, you need to know what to look at.

Briefly about the essence: Standard deviation (STDV) is a volatility map. Where the price can go, where it will stop, where the money is waiting for you.

Practice:

2-2.5 STDV - the main profit zone where the price most often reverses
4 STDV - rare extreme, signal of extreme volatility
Liquidity pools (PD) - indicate where stops and orders accumulate.

Cheat code: If the body of the candle closed above 2.5 STDV - prepare for a possible double expansion. The price may reach up to 4 STDV. High volatility = the trend may continue.

What signals to look for when searching for entries:

Identify the zones where buyers/sellers stand with profit
Look for short-term extremes as turning points.
Combine STDV + Fibonacci levels from local max/min

Theory without practice is just empty noise. Once you understand how volatility works, you won't blindly click the button anymore.

Basic error: Thinking that 4 STDV is normal. No. It is a signal that the price is overheated. Prepare for a correction.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.