Hey Analystforum
In stock charts a band for +/- 1 standard deviation is often included. How is this useful other than interpreting confidence intervals?
In the graph below I would (under assumption of the upper and lower red band being the standard deviation = 1) interpret this as a 68% probability that the daily closing price will be bwtween the two lines.
Can we use plotted standard deviation bands in any other way?
Kind regards,
Christoffer