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.
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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.
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.