DEFINITION of 'Rescaled Range Analysis'
A statistical analysis of a timeseries of financial data that attempts to find patterns that might repeat in the future. While rescaledrange analysis techniques have proved useful in other mathematical endeavors, the evidence for its use in analyzing financial data remains somewhat unproven. There are two main variables used in this technique – the range of the data (as measured by the highest and lowest values in the time period), and the standard deviation of the data. A derivative of this mathematical result is known as a Hurst exponent; if a trend actually exists in the data, this Hurst exponent can extrapolate a future value or average for the data point.
INVESTOPEDIA EXPLAINS 'Rescaled Range Analysis'
The desire to predict patterns in financial data (especially asset prices) is as old as the history of data itself. What makes the search so appealing is that stock market history does show cyclicality, albeit in a nonperiodic way. Business cycle lengths seem to keep showing up in periods of four to five years, although nobody can explain why.

Business Cycle
The fluctuations in economic activity that an economy experiences ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. ... 
Polynomial Trending
A type of trend that represents a large set of data with many ... 
Regression
A statistical measure that attempts to determine the strength ... 
Homoskedastic
A statistics term indicating that the variance of the errors ...

Markets
The Uses And Limits Of Volatility
Check out how the assumptions of theoretical risk models compare to actual market performance. 
Investing
The Ups And Downs Of Investing In Cyclical Stocks
This strategy can be profitable but only if you know when to dump these stocks. 
Active Trading
Market Cycles: The Key To Maximum Returns
You need to understand the various phases of the market cycle to avoid bubbles and make the best investments. 
Investing
How to Use Stratified Random Sampling
Stratified random sampling is a technique best used with a sample population easily broken into distinct subgroups. Samples are then taken from each subgroup based on the ratio of the subgroup’s ... 
Economics
How A Limited Government Affects A Country's Finances
Countries with limited governments have fewer laws about what individuals and businesses can and can’t do. What's the net result? 
Fundamental Analysis
Lognormal and Normal Distribution
When and why do you use lognormal distribution or normal distribution for analyzing securities? Lognormal for stocks, normal for portfolio returns. 
Investing Basics
How Does Goodwill Affect Financial Statements?
Goodwill is a bit of a paradoxintangible, yet it is recorded as an asset on the purchasing company's balance sheet. 
Investing Basics
Using Normal Distribution Formula To Optimize Your Portfolio
Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk. 
Technical Indicators
The Normal Distribution Table, Explained
The normal distribution formula is based on two simple parameters  mean and standard deviation 
Economics
Can Investors Trust Official Statistics?
The official statistics in some countries need to be taken with a grain of salt. Find out why you should be skeptical.