This is a mt4 version of Mladen's standard deviation ratio of adaptive Ema and the standard deviation ratio itself. The standard deviation ratio is not a directional indicator similar to regular standard deviation. Both are stand alone versions.


Mladen's explanation:

Theory:

The Standard Deviation Ratio (SDR) was first presented as a technical indicator in the March 1992 edition of Technical Analysis of Stocks & Commodities magazine ‘Adapting Moving Averages To Market Volatility‘. The author Tushar S. Chande, Ph.D. used it as the Volatility Index in the original version of his Volatility Index Dynamic Average (VIDYA) or Variable Moving Average (VMA).


Usage:

It can be used as any regular average or you can use the slope change of the indicator as signal.