Deviation rate

How far price sits from its moving average, in percent

In detail

The deviation rate expresses the gap between the current price and its moving average as a percentage. A large positive gap suggests the stock has been bought hard in a short time, a large negative gap the opposite. There is no fixed threshold, though: how far is too far depends on how volatile that particular stock normally is.

Example

A price of 1,150 against a 25-day average of 1,000 is a deviation of +15%.

Related terms

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StockFit · TrueNorthLabs Inc.