> ## Documentation Index
> Fetch the complete documentation index at: https://learn.algopilot.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Standard Deviation

**What is it?**\
Standard Deviation measures how much an asset’s price deviates from its average, indicating volatility. It’s a statistical tool to understand price consistency.

**How is it used?**

* **Volatility**: High standard deviation means high volatility; low means stability.
* **Bollinger Bands**: It’s a key component of Bollinger Bands.
* **Mean reversion**: Extreme deviations from the mean often revert.

**How is it calculated?**

StdDev = √\[(Σ(Price - SMA)²) / n]  

Where n is the period, and SMA is the mean price over that period.

<sub>The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.</sub>