What are Net Change Percentage Standard Deviation Projections?
A candlestick is the story of how price moved during a single period: it opens, explores a high and a low, and finally closes.
“By what percentage did price change from open to close?”
That single percentage value – called the net-change % – is the raw material for everything that follows.
Why net-change % matters
If you collect that percentage for thousands of finished candles (daily candles, 1-hour, 4-hour – whatever you close) you get a probability distribution: most candles move only a little, a few move a lot. When you plot those percentages you get the familiar bell-curve. From any bell-curve you can read two key statistics:
Mean – the “typical” net-change.
Standard Deviation (σ) – how far a candle normally wanders from that mean.
A well-known property of a bell-curve is that ≈68 % of all observations stay between –1 σ and +1 σ, and ≈95 % stay within ±2 σ.
For traders that translates into a probabilistic map of where an unfinished candle is likely to close.
“By what percentage did price change from open to close?”
That single percentage value – called the net-change % – is the raw material for everything that follows.
Why net-change % matters
If you collect that percentage for thousands of finished candles (daily candles, 1-hour, 4-hour – whatever you close) you get a probability distribution: most candles move only a little, a few move a lot. When you plot those percentages you get the familiar bell-curve. From any bell-curve you can read two key statistics:
Mean – the “typical” net-change.
Standard Deviation (σ) – how far a candle normally wanders from that mean.
A well-known property of a bell-curve is that ≈68 % of all observations stay between –1 σ and +1 σ, and ≈95 % stay within ±2 σ.
For traders that translates into a probabilistic map of where an unfinished candle is likely to close.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.