RL Stretch
ProductionZ score of the difference between RL10 and RL270 — how many standard deviations from fair value.
RL Stretch
The z-score of the difference between RL10 and RL270 tells you how many standard deviations current price is from long-term fair value. If price is abnormally stretched, watch for rebound behavior.
- RL10 is a proxy for current price.
- RL270 represents long-term fair value.
- Z-score of (RL10 − RL270) quantifies the stretch.
- Abnormal stretch = watch for rebound to fair value.
RL Stretch is a targeting tool. Symbols stretched far from fair value have statistical pressure to revert.
RL Stretch
The z-score of the difference between RL10 and RL270 tells you how many standard deviations current price is from long-term fair value. If price is abnormally stretched, watch for rebound behavior.
- RL10 is a proxy for current price.
- RL270 represents long-term fair value.
- Z-score of (RL10 − RL270) quantifies the stretch.
- Abnormal stretch = watch for rebound to fair value.
RL Stretch is a targeting tool. Symbols stretched far from fair value have statistical pressure to revert.
RL Stretch Layout | LifelongEdge
Regression Line Stretch
RL Stretch Layout
RL10 is a proxy for current price. RL270 represents long term fair value. The Z score of difference between RL10 and RL270 tell us how many standard deviations the current price is compared to fair value. If price is stretched abnormally, we watch for rebound behavior.