Standard Deviation Indicator – FX Replay Guide

The Standard Deviation Indicator in FX Replay measures market volatility, showing how far price deviates from its average over a given period. It’s a key tool for understanding momentum strength, identifying range-to-trend transitions, and adjusting risk settings in your trading system.

How to Add It:

1. Go to the Indicators panel in FX Replay.
2. Search for “Standard Deviation”.
3. Select it and choose your desired period (e.g., 20 for short-term, 50 or 100 for broader context).
4. Apply it to your chart and adjust styling if needed.

How to Use It in FX Replay:

Gauge Volatility

• High SD = wide price swings → potential breakouts or trend volatility
• Low SD = quiet market → potential consolidation or pre-breakout setup

Trend Confirmation

• Combine with moving averages or trendlines to verify trend strength.
• A drop in SD during a trend = market stability
• A spike = possible uncertainty or exhaustion

Spotting Reversals

• Watch for SD spikes at the top or bottom of moves.
• Often signals:
  • Stop hunts
  • Liquidity grabs
  • Potential reversals

Backtest for Strategy Optimization

• Use SD to filter trade environments:
  • → Avoid trend trades when SD is flat and low
  • → Favor breakout trades when SD rises rapidly

Adjust Risk/Trade Size

• High SD: Reduce size or use tighter stops
• Low SD: Widen stops or be selective to avoid chop

Pro Tip:

In FX Replay, the Standard Deviation Indicator is ideal for building context filters.
Use it to:

• Avoid false breakouts during low volatility
• Time your entries when volatility expands
• Combine with tools like Bollinger Bands or volume spikes to enhance signal quality