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I thought it was based on heart rate varibility (HRV). Which is and indication of how quickly Your heart reacts to stress, and how quickly it recovers.
I find it pretty spot on. Sometimes a low TSS workout will give me epic recovery time if its poorly timed (when I'm already fatigued). I can feel it too. Used together With TSB its a great indicator of freshness.
https://www.firstbeat.com/en/science-and-physiology/heart-rate-variability/
Probably been covered before, so apolz:
How does the recovery time estimate on the garmin actually work? is it based on time in HR zone? I know it's best taken with a pinch of salt but interested nonetheless.
I was quite satisfied to get a '50 hour' time this morning after a 50 min turbo session. 1 hour per minute. my HR was through the roof however.