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Price Dynamics

Statistical Extreme

A price move or metric reading that falls beyond normal ranges for the current session, typically two or more standard deviations from the session mean.

How Draconic reads it

When a metric reaches statistical extreme territory, it has entered the range that is, by mathematical definition, unsustainable within the current session's conditions. A z-score above 2.0 means the reading is in the 95th percentile. Above 3.0 (climactic) means the 99.7th percentile. These are not prediction signals; they are contextual signals. A climactic velocity reading doesn't guarantee reversal in the next candle. It means the move has gone further and faster than 99.7% of comparable moves in the instrument's history, and continuation from that point requires conditions that rarely persist. When multiple metrics simultaneously reach extremes — velocity, swing duration, and range all at once — the probability of continuation drops sharply.

Educational only. Not financial advice. Trading involves risk.