Kairi relative index
The percentage difference between the current price and its moving average, used to spot how far price has stretched away from its trend.
What the numbers mean
The lookback is the moving-average period price is compared against; the plotted value is how far price sits from that average, as a percentage. Ten is the common default, with 20 used for a slower read.
- 10 — the usual moving-average period price is measured against (20 for a slower version)
- ±5% — a typical stretch threshold for large-cap stocks
- ±10% or more — what it takes in volatile names
- Thresholds must be set per security; there is no universal level
How it is used
Read as a stretch gauge — when price runs far above or below its average, the reading is treated as a mean-reversion opportunity. The thresholds are set per security, since a 5% deviation is routine in some names and extraordinary in others.
- Large positive readings → price far above its average, a mean-reversion setup
- Large negative readings → the opposite
- Readings near zero → price sitting on its average
How it relates to everything else
Kairi is the percentage distance from a moving average, which is exactly what a percentage envelope draws as a band. It has the same weakness as every stretch measure: a large deviation is what the start of a powerful trend looks like, not only the end of one.
- The numeric form of a percentage envelope
- Similar information to Bollinger %b, without the volatility adjustment
- Use ADX to distinguish a stretch from a breakout
What to watch for
It is one of the oldest indicators in use and one of the bluntest: a large deviation is exactly what happens at the start of a strong trend, not only at its end.