Rubber Band Effect

Rubber Band Effect

A situation in which a security or market drops precipitously and rises just as much just as fast. On a graph, the rubber band effect looks like a capital "V" because of the price declines and increases. The rubber band effect usually occurs due to the execution of limit orders by computer programs.
References in periodicals archive ?
'It was like a rubber band effect. It takes time to snap back [to place and maintain the distance],' Camara added.
Ahead of the next generation of Lexus vehicles, the drivability of the LC500h was developed to achieve fun-to-drive performance by eliminating the rubber band effect, i.e., the phenomena in which the engine speed increases before the vehicle speed increases or before the driver feels acceleration.
Because increases in engine speed before the vehicle speed increases or before the driver feels acceleration are a cause of the rubber band effect, this development focused on stabilizing the engine speed when the vehicle accelerates.
Increasing the dependency of the vehicle speed relative to that of accelerator pedal positon could reduce the rubber band effect. Followed by this characteristic of the dependencies, the engine speed of vehicle accelerations was designed to mainly depend on the vehicle speed and slightly depend on the accelerator pedal position as shown in Fig.
However, the rubber band effect unfortunately makes itself felt when down shifting.
''There's sort of a rubber band effect where PCs that need to be replaced will be,'' said IDC senior analyst Jay Chou.
(50 mm) extruder with an AKcess Level II Touchscreen System; inline spiral flow die head; Conair multi-pass vacuum tank with servo driven wheel to minimize the rubber band effect and to minimize tension within the process; servo driven nip roller puller; automatic cut and transfer coiler and a Zumbach ID/OD/Wall tube measurement system with closed-loop control of the OD and wall thickness.
One of the concerns I hear most often is about the rubber band effect. "We send people to leadership development events and they come back really excited.
Over the past year, I have been deeply involved in this question as I focused on mitigating the rubber band effect for clients.
This reduces the length of the drive-shaft - helping to eliminate the "rubber band effect" - to increase the accuracy and repeatability of test results.
The rubber band effect associated with CVT transmissions is surprising not felt as much on this one.