Historical price movements are not used as input data to generate future Synthetic Index price movements. Each new movement is generated independently of previous price history.
For example, a series of consecutive upward movements does not make the next downward movement more or less likely simply because of that sequence. Previous price levels, the magnitude of earlier movements, and patterns visible on a chart do not influence the generation of the next price movement.
Technical analysis may identify statistical patterns within a particular period of historical data. However, the presence of such a pattern does not mean that it is part of the generation algorithm or that the algorithm will reproduce it in the future.
The same principle applies when the price approaches zero or moves into negative territory. The algorithm does not treat zero as a special price level and does not use previous price history to prevent further movement in either direction.
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