FTB-C000640 / Evidence concept

Trendline Extrapolation Scope

Trendline Extrapolation Scope is the explicit limit that a fitted line is descriptive outside the observed pivot set.

Definitions

In plain terms

The line can be evaluated beyond the last pivot, but that does not show price will follow it.

Technical

Projection is a deterministic model evaluation; no claim of causal prediction, profitability, or future barrier behavior is included.

Scope

Keep projection separate from forecast, signal, or trade labels in UI and search metadata.

Examples

  • A reviewer computes Trendline Extrapolation Scope on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • Keep projection separate from forecast, signal, or trade labels in UI and search metadata.

Concept relationships

Where this concept is used

Tutorials planned

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

  • D08-F01-A04 Important

Evidence and governance

  1. Linear Least Squares Regression NIST/SEMATECH · official standard

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: A fitted line remains descriptive and is not evidence of a future price path.

  2. sklearn.linear_model.RANSACRegressor scikit-learn · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: This package enumerates every two-point hypothesis for small pivot sets instead of using random sampling.

  3. numpy.log NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

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

  4. numpy.polyfit NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: The glossary freezes its own log-space OLS contract, diagnostics, and tie rules.

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.