FTB-C000628 / Formula component

Two-Point Line Hypothesis

Two-Point Line Hypothesis is a candidate line defined by two distinct confirmed pivot event indexes.

Intermediate 1 linked topicEvidence-reviewed

Definitions

In plain terms

Every pair proposes one possible slope and intercept before consensus is scored.

Technical

For t_i != t_j, the hypothesis passes through (t_i, log p_i) and (t_j, log p_j); pair enumeration is deterministic.

Scope

A minimal pair is a hypothesis, not automatically the winning trendline.

Examples

  • A reviewer computes Two-Point Line Hypothesis on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • A minimal pair is a hypothesis, not automatically the winning trendline.

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-A04 Important

Evidence and governance

  1. Random Sample Consensus: A Paradigm for Model Fitting Fischler and Bolles · first party technical publication

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

    Limits: The original applications are image analysis and cartography, not financial trendlines.

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

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

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

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

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

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

  4. 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.

  5. numpy.polyfit NumPy · first party technical publication

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

    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.