How to Become a Successful Forex Trader with Standard Deviation System

Easy and Accurate Standard Deviation Forex Trading System – How to Become a Successful Forex Trader. Anyone can get lucky trading forex a couple of times, since exchange rates can fluctuate up and down with roughly equal probability. Nevertheless, forex trading needs to be approached in a highly-disciplined manner in order to achieve optimum results over the long term in terms of consistent profitability earned by taking acceptable risks.

Standard deviation is an indicator that measures the size of an asset’s recent price moves in order to predict how volatile the price may be in the future.

It can help you decide whether volatility is likely to increase or decrease. A very high standard deviation reading indicates that a huge price change has just occurred, but that a decrease in volatility could soon follow. A very low standard deviation reading indicates the opposite.


Standard Deviation Trading Rules


The standard deviation indicator is easy to interpret since it reflects market behavior, which itself consists of shifts between highly active and sluggish market conditions. If standard deviation is too low, i.e. the market is exceedingly inactive, it would make sense to expect a spike soon. Conversely, if the value is extremely high, then a decline in activity is likely about to follow. And now let’s go to the rules…


BUY Rules
  • StdDEV MA indicator increase -> white line upward above upward red line
  • MA 55 Aqua line above MA 200 Yellow line
  • HeikenMatrix Indicator blue and upward  -> HeikenMatrix above MA 55 Aqua line
  • Price above blue HeikenMatrix
  • Price upward above upper band bollinger bands


SELL Rules
  • StdDEV MA indicator increase -> white line upward above upward red line
  • MA 55 Aqua line below MA 200 Yellow line
  • HeikenMatrix Indicator red and downward  -> HeikenMatrix below MA 55 Aqua line
  • Price below blue HeikenMatrix
  • Price downward below lower band bollinger bands


Standard deviation is considered as one of the most reliable indicators available to traders, but under certain conditions. In trending markets where volatility is moderate and price oscillation is concentrated around the middle of the range, the standard deviation indicator is one of the best tools you would find. Many of the methods hedge fund operators and bank analysts use are strongly dependent on normal distribution patterns.

Don`t get too confident. No one can predict the market with 100% accuracy. You need to always expect the unexpected. If you become uneasy, or the market becomes choppy, exit your trades.

9 thoughts on “How to Become a Successful Forex Trader with Standard Deviation System

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