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Note: This download requires NinjaTrader 8 release 8.1.3 or newer.

Introduction to Relative Volume Standard Deviation

Introduced by Melvin E Dickover, the Relative Volume Standard Deviation indicator for NinjaTrader is part of first of a dual indicator setup that helps determine support and resistance lines. The indicator factors in price and volume detecting points where price movement is restricted. This is of course, utilized along with the Freedom of Movement indicator. For reference, when such points are identified, they are marked as Defended Price Lines (DPLs).

The following is quoted from the ThinkOrSwim site:

" DPLs can be drawn using the Price Level drawing. Suggestions for placing these lines are the same as for the Relative Volume StDev:

• Overlapping bars. If the indicator spike corresponds to a price bar overlapping the previous one, the previous close can be used as the DPL value.
• Very large bars. If the indicator spike corresponds to a price bar of a large size, use its close price as the DPL value.
• Gapping bars. If the indicator spike corresponds to a price bar gapping from the previous bar, the DPL value will depend on the gap size. Small gaps can be ignored: the author suggests using the previous close as the DPL value. When the gap is big, the close of the latter bar is used instead.
• Clustering spikes. If the indicator spikes come in clusters, use the extreme close or open price of the bar corresponding to the last or next to last spike in cluster.

DPLs can be used as support and resistance levels. In order confirm and refine them, it is suggested that you use the Relative Volume StDev together with the Freedom of Movement, another indicator developed by Melvin E. Dickover."

Key Features of the Relative Volume Standard Deviation

1. • Averaging Methods: All internal averaging methods can be customized by the user. The user is no longer restricted to simple moving average.
   • Deviation Line: The user can set the standard deviation line as desired.
   • Negative Values: Even though this is not needed, the user has the option to display negative values.
   • User Interface: All color can be customized by the user.

Review the screenshots and video for setup options.

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