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Market noise

The part of price fluctuation unconnected to new information and not reproduced on a second look.

How to read the number

The line between signal and noise is drawn by the observer's model: what registers as a movement on a one-minute chart is invisible on an annual one.

When the metric lies

Over a short stretch noise is indistinguishable from signal, and any indicator tuned to suppress it suppresses the opening of a genuine move along with it.

Also known as: market noise

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