Momentum Deviation as a Standard Deviation Variant
Summary
The document introduces momentum deviation as a variation on standard deviation. Rather than calculating dispersion from price itself, it applies the calculation to price momentum. It says the method is designed to use little CPU and that its values are similar to those of standard deviation.
The indicator is presented as broadly applicable to measuring deviation, including deviation in other inputs, and is recommended for use in the same way as a standard deviation indicator. No calculation details, examples, parameter settings, tested markets, or performance results are supplied. As a result, the text offers a basic conceptual description but does not establish how the measure behaves in practice or whether it adds value to a trading system.
Key ideas
- Momentum deviation applies a standard-deviation-like calculation to price momentum instead of price levels.
- The document describes its values as similar to standard deviation.
- It claims the calculation is designed to require little CPU.
- No formula or trading performance evidence is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.