Hello PipMeUp,Originally Posted by ;
Interesting analysis and explanation - Thank you. One thing that I often consider when analyzing the derivatives of price since in subgraph #2 and #4 above from the picture is to also plot the cumulative sums of these two figures to get an idea of how much mean reversion as time passes there is in these measures - and compare the outcome to subgraph #1. I do this because these plots often lie about cumulative mistakes and my eye can not pick up the discrepancy without an alternate visualization.