This indicator is the measure of the security's systematic risk. Beta Coefficient demonstrates the relative inconstancy of a security, or portfolio, compared to the market situation. The market is determined to have a 1.0 beta as the starting point of this measurement.
A Beta below 1.0 demonstrates that a security is less unsteady than the market. On the other hand, a Beta value over 1.0 means that a security is more unsteady than the market. When the Beta is 1.0, they say that the security's price is "moving along with the market."
The distinction between Beta and Beta2 is that Beta2 uses the Moving Average of the Rate of Change in its calculations instead of using the Simple Rate of Change. With either form of Beta, securities with a value higher than 1.0 will be more inconstant than the market. A Beta less than 1.0 is said to be less volatile than the market.
Overall, the Alpha-Beta Trend Channel study uses the standard deviation of price variation for building 2 trend lines, one over and one under the moving average of a price field. This develops a band (channel) in which the greater part of price field values will happen.