> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/models/unicorn-model-tm/standard-deviation.md).

# Standard Deviation

Once a model is formed, the Unicorn Model calculates standard deviation levels based exclusively on the wicks of the MSS High and MSS Low, using the range between the Zigzag 2nd Point (anchor) and the Zigzag 3rd Point (manipulation swing) as the projection base.

<figure><img src="/files/QK8r8kDQgG2ftxJz5AJT" alt=""><figcaption></figcaption></figure>

These standard deviations measure the expected extension of price by quantifying its dispersion from this key structural move, helping forecast potential swing targets and overextensions. By anchoring the calculation to the wicks, the model captures the full breadth of price fluctuations, including volatility extremes and broader market dynamics.

Standard deviation levels such as 1σ and 2σ are extended from this base to anticipate price expansion zones. When price reaches or exceeds the 2σ level, the standard deviation is considered invalidated—signaling the move may be overextended or complete.

This wick-based, structural approach gives traders a comprehensive framework for planning exits, managing risk, and evaluating trend strength. These standard deviations are fundamental to the Unicorn Model, providing clear insights into future price behavior and enabling confident strategy execution.


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