Now, let's apply the previously introduced concepts of using a volatility measure to adjust the number of days used in Fast and Slow EMA and using a volatility-adjusted APO entry signal. We will use the standard deviation (STDEV) indicator we explored in Chapter 2, Deciphering the Markets with Technical Analysis, as a measure of volatility. Let's observe the output of that indicator quickly to recap the Google dataset:
From the output, it seems like volatility measure ranges from somewhere between $8 over 20 days to $40 over 20 days, with $15 over 20 days being the average. ...
