Stretched Far From the Moving Average. Now What?
When a stock extends above its short-term moving averages, it will either continue to run or mean revert back. This tool detects how far your ticker is from its 5- or 10-day MA right now and shows you what usually happens next.
Price never strays far from its moving average for long, or so the mean-reversion crowd says. The trend-followers say the opposite: the strongest moves are the ones that pull away and keep going. Both are describing the same thing, a stock stretched a notable distance from its short-term moving average, and they cannot both be right for the same setup. The decision-relevant question is what this ticker has actually done from a stretch like this.
The honest answer depends on which moving average it is stretched from, which side, how far, and the ticker. A stock 3% above its 5-day MA is a routine wobble. One 12% above its 10-day MA is a genuine outlier. The forward distribution is the only way to tell a snap-back setup from a runaway one.
A live extension read, a 45-day forward price cone, a Next Move Direction bar graph, a full sortable event log, and a watchlist scan of how stretched the board is right now.
One glance tells you how far the stock is stretched from its short-term moving average today.
Projects the next 45 days by applying forward returns from past similar extensions.
How often price rose or fell by a set percentage after similar extensions.
How far price has stretched above or below its 5- or 10-day moving average, the gap mean-reversion and trend traders both watch.
The tool scans the market and auto-highlights the most stretched stocks today.
The Historical Log displays every past instance when the stock was stretched like today.
Check if any stocks on your watchlist or in the market are stretched far from their moving average today.
Open the 45-day price cone. It shows how price behaved after similar extensions in the past. This gives you a realistic view of what typically happens next instead of guessing.
Switch to Bar Graph view and set your target price level. The bars show how often similar extensions reached that distance by upcoming expirations. Toggle between "By Touch" and "By Close" depending on your strategy.
Before acting on the signal, open the events log. Check how many historical matches exist and whether they cluster in one period. A small sample or regime-specific cluster tells you the signal may be less reliable than the percentages suggest.
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