FTB-C000332 / Formula component

Path Length

Path Length is the sum of absolute consecutive input changes across a declared lookback path.

Also known asKAMA volatility sum

Intermediate Formula defined 1 linked topicPublished

Definitions

In plain terms

It measures how much the series traveled regardless of direction and forms the efficiency-ratio denominator.

Technical

The path must use ordered adjacent valid observations with frozen gap, duplicate, adjustment, and missing-data rules.

Scope

It is not geometric distance in a multi-dimensional factor space.

Formula

Path length = sum(abs(x_i - x_(i-1)))
LaTeX: PL_t=\sum_{i=t-n+1}^{t}|x_i-x_{i-1}|
SymbolMeaningUnit
x_iordered input observationinput unit
npath lookbackobservations

Output unit: input unit

Examples

  • A governed lesson uses Path Length only with declared inputs, timing, parameters, and edge-case behavior.

Common misconceptions

  • It is not geometric distance in a multi-dimensional factor space.

Concept relationships

Related

Required by

Where this concept is used

Tutorials planned

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

  • D07-F01-A08 Important

Evidence and governance

  1. Kaufman Adaptive Moving Average TA-Lib · first party technical publication

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

    Limits: Implementation seeding, readiness, and parameter defaults must be frozen for reproducible parity.

Reviewed by
fintech-builder-batch-006
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
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.