What does deviation mean in cryptocurrency trading?

1 answers

• Rahimullah IbrahimiDec 15, 2024 · 8 months ago
  Deviation in cryptocurrency trading is a concept that is often used to measure the volatility or price movement of a cryptocurrency. It is calculated by comparing the current price of a cryptocurrency to its historical average price. A high deviation indicates that the price is highly volatile and can change rapidly, while a low deviation suggests a more stable price. Traders can use deviation to identify potential trading opportunities, such as buying when the price is below the historical average and selling when the price is above the historical average. However, it is important to note that deviation alone is not a guarantee of future price movements. Traders should also consider other factors such as market trends, news, and investor sentiment when making trading decisions.
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