Adjusted price data misleading?

Robertplayitloud

Dear Traders, Stockckarts uses adjusted data which is imho irritating in particular when scanning for stocks.

I understand the adjustment in the case of splits, but in the other cases such as ex-dividend price action, the adjusted price levels appear misleading, see e.g. AM in weekly (PnF is different, support and resistance levels are different etc.). There is a possibility to display unadjusted data with underscore, but this unfortunately un-adjusts the splits as well.

How do you deal with this issue?

lmkwin

I have asked many times over the years of Support to include the yield information (among other things) in the PnF header. At least one would know that they may want to review the unadjusted chart if that information were available. With no visibility, you can't make an informed decision.

The header information on the PnF chart, compared to the SharpChart is fallibly different, and StockCharts doesn't appear to think that it is important enough to fix. There have been no "updates" on Point and Figure Charts in the time that I've been a member.

You are correct. The unadjusted data, particularly on high yielders, changes the appearance significantly on PnF charts. How to deal with it? The only suggestion I have is to use the % trend scale. That isn't optimal but it can lessen the impact on the appearance.

All scans are based on adjusted data.

Below is the difference in Header information on CROX.

This is the SharpChart Full Quote Header


This is the Point and Figure Header. No options


It would be great to know the Sector/ Industry, SCTR, PE, Mkt Cap, Options, Yield, etc on the PnF Header.

On the PnF header it would be nice to know what option you selected for the Type High/Low vs Close Only, Period (daily, weekly, intraday, etc) and the Price Objective (breakout or Reversal method).

Seems like simple things but.... there is plenty of room... but......
I've also asked for the ability to select attributes on PnF charts. If I want two Moving Average blue lines, let me pick blue for two of the lines. And add a Horizontal Line option.

Seems like simple things but....

Robertplayitloud

Mark, I fully agree with you, and thank you for your hints. I have the impression that Stockcharts prioritized the development of the ACP charts, and cared less about what actually makes them unique.

lmkwin

I stand corrected on one of my "beefs"

See that "daily"? That is the Period chosen.

Robertplayitloud

Mark, may I ask you a question: How do you correlate the yield with the data adjustment, or, in other words, how else do you use this information? Thank you!

lmkwin

Not Mark here, but the data is adjusted for splits, and dividends / distributions.

https://support.stockcharts.com/doku.php?id=policies:adjusted_data

Putting an underscore in front of the symbol will show the unadjusted data on the chart.

"In addition to performing adjustments that remove large gaps caused by splits, we also adjust our historical data to remove smaller gaps caused by dividends and distributions. By making these additional adjustments, we ensure that all price movements on our charts are caused by pure market forces - that is, the forces that Technical Analysis attempts to identify. "

It's just information, you have to determine how to use it. If you use PnF charts, you would never know that there was a data adjustment due to dividend / distribution. Splits are an entirely different animal that don't really make a difference in my opinion. Adjusted data is fine. It's only on the high yielders where adjusted data vs unadjusted can make a significant change in the appearance of the chart. If you are looking at high yields, it's something to keep in mind.

Robertplayitloud

Thank you, Andrew