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Technical Studies Reference

Relative Volume Standard Deviation

This study calculates and displays a Relative Volume Standard Deviation for the Volume Data. It is frequently used in conjunction with the Freedom of Movement study. Both studies were created by Melvin E. Dickover.

Let the Length and Number of Standard Deviations Inputs be denoted as \(n\) and \(N_{\sigma}\), respectively.

We denote the Relative Volume Standard Deviation at Index \(t\) as \(RV_t(n)\), and we compute it using a Simple Moving Average and a Standard Deviation as follows.

\(\displaystyle{RV_t(n) = \frac{V_t - SMA_t(V,n)}{\sigma_t(V,n)}, \space \sigma_t(V,n) \neq 0}\)

Note: Depending on the setting of the Moving Average Type Input, the Simple Moving Average in the above formula could be replaced with an Exponential Moving Average, a Linear Regression Moving Average, a Weighted Moving Average, a Wilders Moving Average, a Simple Moving Average - Skip Zeros, or a Smoothed Moving Average.

By default, \(RV_t(n)\) is displayed as a histogram. If \(RV_t(n) > N_{\sigma}\), then the Primary Color (green by default) is used. Otherwise, the Secondary Color (red by default) is used.


*Last modified Monday, 03rd October, 2022.