IG Index Charts Conundrum

[pdriver]

Can anybody explain something about my IG Index charts that been puzzling me.

When I plot a simple moving average (eg 200 day) on the IG charts the levels are somewhat different to the values quoted buy another chart service to which I subscribe as well as the basic 'end of day' charts available from ProRealTime, not to mention those of The FT and Google Finance.

With IG, both the simple and advanced charts are provided by IT Finance, who also provide charts for many other spread betting companies. Furthermore, IT Finance is also the company behind ProRealTime charts, which offers an independent charting and data service.

To use the S&P Daily Index as an example; the 200 day moving average as of today (03/06/10) is in the region of 1121. Yet 'true' value as shown the other charts is the the region of 1106. One has only to look at the position of the line in relation to the candles to see that there is a major discrepancy.

In trying to figure this out it occurred to that the anomaly could be caused by the difference between the IG futures price and end of day data used by the the other services. However, I am ready discount this because the price divergancies appear to be really small, only a decimal place or two out.

I have posted screen shots below to illustrate my point and would really appreciated some feedback.

Paul

IG Chart

FT Chart

Ecube Chart

 

[Waterfield]

I'm taking a guess, it depends on where the line is plotted. If it's on the close of a candle, the open of a candle, the H or L etc.

HTH

Phil

 

[Jack Hughes]

I'm taking a guess, it depends on where the line is plotted. If it's on the close of a candle, the open of a candle, the H or L etc.

HTH

Phil

Depends where the calculation starts, I think, but is the 200MA really that critical, anyway?

 

[D70]

Can anybody explain something about my IG Index charts that been puzzling me.

When I plot a simple moving average (eg 200 day) on the IG charts the levels are somewhat different to the values quoted buy another chart service to which I subscribe as well as the basic 'end of day' charts available from ProRealTime, not to mention those of The FT and Google Finance.

With IG, both the simple and advanced charts are provided by IT Finance, who also provide charts for many other spread betting companies. Furthermore, IT Finance is also the company behind ProRealTime charts, which offers an independent charting and data service.

To use the S&P Daily Index as an example; the 200 day moving average as of today (03/06/10) is in the region of 1121. Yet 'true' value as shown the other charts is the the region of 1106. One has only to look at the position of the line in relation to the candles to see that there is a major discrepancy.

In trying to figure this out it occurred to that the anomaly could be caused by the difference between the IG futures price and end of day data used by the the other services. However, I am ready discount this because the price divergancies appear to be really small, only a decimal place or two out.

I have posted screen shots below to illustrate my point and would really appreciated some feedback.

Paul

IG Chart

FT Chart

Ecube Chart

Hi pDriver,
I have also noticed this.
I havent asked IG but from what I can make out, it is IG that are wrong.
It might have something to do with the sunday night bar.
I havent spent anytime looking into it.
So I would just go with another charting platform for your ma's.

Regards,.

ps. Everyone elses responses are somewhat idiotic.

 

[DeusExMachina]

Hi all,

I'm new to the forum so apologies if I make any stupid mistakes/comments. I think it's because IG make own prices around the real prices of the instrument in question (which is obviously advantageous to them, and not to us as spreadbettors). Hence, their graph's will display their own prices, and not the real market prices, which websites such as The FT and Google Finance, along with live market data chart providers, will display.

 

[Black Swan]

I'm with Jack on this; does it really matter if you're taking/making decisions off a 200ma? In times gone past I used to trade off 2 mas crossing, I'd notice they were later on IG/pro real time than Alpari/fxcm using meta... and could be up to a candle late on TFs 15 mins and below...not sure what the reason/solution is tbh...why not call IG and ask?

 

[D70]

Depends where the calculation starts, I think, but is the 200MA really that critical, anyway?

Yes it is critical.
Look at a chart. You will/might see why.

 

[pdriver]

Thank you for the replys.

@Waterfield. It's not the open or close, it is actually possible to configure these. Exponential gives a slightly better line but it still some 6 or 7 pints astray on the S&P. This could be as much a 100 points with some currency pairs, which is enough to make ones trading much more of a gamble rather than a considered risk.

@Jack Hughes. As far as I am aware, the 200 Day moving average is probably the most followed indicator going. Since much technical analysis is somewhat self fulfilling it is important to be seeing what everybody else is seeing.

@D70. I went to sleep last night wondering about the Sunday night bar and hey presto, you're right.

Since IG charts are therefore working on a 6 day week rather than 5 day, the MA values that I am now using are 240 (for 200), 120 (100), 60 (50).

Of course this doesn't help on the lesser time frames where a much more complicated formula would be required.

I guess that this is another banana skin that the SB firms choose not to tell us about.

 

[pdriver]

@ Blackswan. I agree that when using a crossing MA system the discrepancy would not be too crucial. However there are many professional money managers, hedge funds and institutions that use different trading rules. For example; buy (or buy dips) when prices are above a MA and sell (or sell rallies) when prices are below. As D70 says "Yes it is critical".

 

[thjb]

Since IG charts are therefore working on a 6 day week rather than 5 day, the MA values that I am now using are 240 (for 200), 120 (100), 60 (50).

Of course this doesn't help on the lesser time frames where a much more complicated formula would be required.

I guess that this is another banana skin that the SB firms choose not to tell us about.


I pay attention to the chart of ft or bloomberg,there are space data on some days ,that will affect the calculation result also. If there will be one space there will be a rectifications with parameter.
because ig will provide the tradeing on a 6 day week rather than 5 day for venture need of trader ,that will be a differece chart parameter than the the chart of ft or bloomberg. and there are no space data on the it-finance chart.

 

[Black Swan]

@ Blackswan. I agree that when using a crossing MA system the discrepancy would not be too crucial. However there are many professional money managers, hedge funds and institutions that use different trading rules. For example; buy (or buy dips) when prices are above a MA and sell (or sell rallies) when prices are below. As D70 says "Yes it is critical".

Hi bud, yep only too aware of the relative importance of the 200ma and who watches it/makes decisions off it, and yes if you look at how, for example, cable has tested it a few times this week you can see that it's critical once it breaches. I guess I just don't have the *luxury*/patience/experience/insitutional cash of being able to use that ma for decision making..one day Rodders...

 

[Jack Hughes]

ps. Everyone elses responses are somewhat idiotic.

Only 'somewhat'? I'll have to try harder in future.

 

[Jack Hughes]

Yes it is critical.
Look at a chart. You will/might see why.

Believe it or not, I do look at charts occasionally and also realise that 200MAs are widely used. IMO it's better to think of MAs as fairly wide channels, not thin lines for making snap decisions.

 

[Countvonaltibar]

This issue has really got up my nose and the sunday candle is definitely a factor. I've asked IGindex on a few occasions and they say it's down to ITFinance advanced charting not working properly when you've clearly deselected the sunday candle. They said they were onto the issue to get it resolved and that other people had complained but that was about 4 months ago and nothing done as yet. As people say, another banana skin!

 

[Shakone]

I emailed IT-Finance about their charts, and why you can't remove the weekend bars (even though there does appear to be an option, it only works on intraday charts), why you can't have a horizontal support line carry over into tick charts and other errors and omissions with IGIndex's advanced charts. Surprise surprise, IT-Finance said it was actually down to IGIndex not allowing the functionality. I don't know who is telling fibs.

 

[alphahunter]

PDriver,

Closing prices at IG Index (trading platform) and prices at ProFinanceIT (charting platform) don't often match - and I believe that ProFinance does not feed in the closing auction price. That may explain the discrepency between ProFinance's and other EoD's charts.

 

[oiltanker]

you'll find a lot of the other indicators don't match either between charting platforms. some one showed a while back that even some of the algorithms are wrong/incomplete.

as long as the error is consistent then one can work around it.

people will provide those indicators in a form that make them the most money ?

free charts -you get what you pay for.

 

[pdriver]

As mentioned earlier, I ended up working with a 240 period timeframe.

 

[Agentginger]

does anyone know if there is a market that allows me to buy/sell the FSTE 100 at or near the official market open price?
I appreciate the FSTE 100 is not really a tradable product per se, and IG's prices are built from the nearest futures price, but this essentially means that when the FTSE opens at 8am, the price I can get from IG's "daily funded" bet can be 30, 40, 50 or more points adrift of the "official" open.

Does a market exist that gives me access to the "real" open price?

 

[tomorton]

This is only theoretically possible, in practice the SB companies restrict their platforms so they are not offering a position so far from the underlying. Have you watched the IG market on the index through the open at 8 to see if you can actually open trades on it at this time?