Peaktotrough

Peaktotrough is a term used in data analysis and related disciplines to describe the range of values from a peak (a local maximum) to a trough (a subsequent local minimum) in a time series. Depending on the context, it is often used interchangeably with concepts like peak-to-peak amplitude or drawdown, though some fields distinguish these ideas.

In general, peaktotrough refers to the difference in value between a peak and the following trough within a selected window or cycle. It can be computed as the maximum value minus the minimum value within the specified interval, or as the difference between a specific peak and the immediately following trough. The result can be expressed as an absolute difference or as a percentage of the peak.

In finance, peaktotrough is closely related to the concept of maximum drawdown, which measures the largest decline from a peak to a trough over a given period. The drawdown is commonly expressed as (peak − trough) / peak, indicating the severity of decline relative to the peak value.

In signal processing and engineering, peaktotrough (often referred to as peak-to-trough magnitude) describes the excursion of a waveform from its highest to lowest point within a cycle, contributing to assessments of signal strength or dynamic range. It is related to but distinct from peak-to-peak measurement in some contexts.

Limitations include sensitivity to window length, choice of peaks and troughs, and susceptibility to outliers or noise. Proper application typically involves smoothing, consistent windowing, and clear definitions of peaks and troughs. See also peak-to-peak, drawdown, and trough.