FTB-C000613 / Formula component

Log-Price Distance

Log-Price Distance is the absolute distance between two positive prices after natural-log transformation.

Intermediate Formula defined 1 linked topicEvidence-reviewed

Definitions

In plain terms

It measures ratio-like separation, so equal percentage differences are comparable at different quote levels.

Technical

d(i,j)=|log(p_i)-log(p_j)| for finite positive prices.

Scope

The transform requires a consistent positive price basis and does not remove all market-regime differences.

Formula

d(i,j) = abs(log(p_i) - log(p_j))
LaTeX: d(i,j)=|\log p_i-\log p_j|
SymbolMeaningUnit
p_ipositive pivot priceprice

Output unit: log-price

Examples

  • A reviewer computes Log-Price Distance on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • The transform requires a consistent positive price basis and does not remove all market-regime differences.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D08-F01-A03 Important

Evidence and governance

  1. numpy.log NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: A log transform requires positive finite prices and does not by itself define a financial level.

  2. sklearn.cluster.DBSCAN scikit-learn · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package implements deterministic one-dimensional DBSCAN directly for Python/TypeScript parity.

  3. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

Reviewed by
fintech-builder-batch-011
Last reviewed
2026-08-09
Next review
2027-08-09
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.