Definitions
In plain terms
It represents downward movement as a nonnegative series so average loss can enter a ratio cleanly.
Technical
The implementation freezes equality, input precision, missing changes, adjustment basis, and chronological order.
Scope
Loss magnitude is positive when price falls; it is not stored as a negative number.
Formula
Loss_t = max(-Change_t, 0)L_t=\max(-\Delta C_t,0)| Symbol | Meaning | Unit |
|---|---|---|
Change_t | close-to-close change | price |
Output unit: price
Examples
- A governed lesson calculates or identifies Loss Magnitude only after its inputs, window, state, scale, and edge cases are declared.
Common misconceptions
- Loss magnitude is positive when price falls; it is not stored as a negative number.
Concept relationships
Prerequisites
Required by
Where this concept is used
Evidence and governance
- Relative Strength Index TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: Seed, flat-series behavior, unstable periods, and platform compatibility must be frozen before claiming parity.
- Reviewed by
- fintech-builder-batch-008
- Last reviewed
- 2026-07-29
- Next review
- 2027-07-29
- Record status
- published