Overextension
Technical analysisA quantified measure of how far price has moved from its own recent average.
In plain terms
Two standard deviations below a 20-day mean is overextension. "It has fallen a lot" is not.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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A quantified measure of how far price has moved from its own recent average.
Two standard deviations below a 20-day mean is overextension. "It has fallen a lot" is not.