Recovery within the week
What does it mean when a market hits a low mid-week but still finishes the week higher?
In plain words
A recovery within the week happens when a market falls to its low during the week, then climbs back and closes above where it opened. The path matters: the weekly return hides a fall that came first and a rebound that erased it.
Why it matters
A weekly gain reached only after a deep dip carries different risk than a steady rise. Anyone who set positions, stops or collateral levels near the low may have been liquidated or shaken out before the recovery, so a good weekly return alone does not say who survived the week.
In a real week: ETH, week of 11 July 2022
In the week of 11 July 2022, ETH opened at 1168.37, fell to a low of 1006.32 on Wednesday 13 July at 12:00 UTC, then closed the week at 1338.65, a return of 14.57%. The week's range was 41.4%, and the close finished at 79.8% of that range, in the upper part of it, but only after the market had traded down first.
A common mistake
Reading the weekly return as the experience of everyone in the market. One possible reading is that the gain came after a low a position sized for a quiet week could not have absorbed, but the data shows the path, not who held on.