Momentum Deviation as a Volatility Indicator
Summary
The document describes momentum deviation as a variation of standard deviation that applies the calculation to price momentum rather than to price itself. It says the method is designed to use minimal CPU resources and produces values similar to standard deviation. The accompanying comparison is referenced as an image, but no calculation formula, parameter settings, or numerical examples are included in the text.
The author says the measure can be used like a standard deviation indicator and can calculate deviation for other series as well. This suggests a general dispersion measure applied to momentum data, but the document does not specify how momentum is defined or explain how to interpret indicator levels for entries, exits, or risk limits. Its practical claims therefore remain high-level, with no stated empirical evaluation or performance evidence.
Key ideas
- Momentum deviation applies a dispersion 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 minimal CPU resources.
- The measure is presented as usable like a standard deviation indicator, but no formula or trading rules are supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.