Market reaction
What an instrument actually did over the 1, 5 and 20 sessions after an event, measured from daily closes.
Formula
Reaction(n) = Close n sessions after the anchor ÷ Close at the anchor − 1
Inputs
- Anchor. The previous close for a release before the open (an 08:30 inflation print); that day's close for an event after the close (earnings at 17:00).
How to read it
Context, not causation: twenty sessions contain far more than one event.
How to use it
See how a kind of event has typically moved the market, measured the same way every time.
In Kereon
Calendar · Event Profile. From the same daily closes the Superchart draws.
Investing · Expectations. The stock's moves over the one and five sessions after each earnings report.
Also called: reaction, post-event move, event reaction.