Charts

[Stylerz]

Could someone please explain the difference between an adjusted and unadjusted chart.

Sorry if its an obvious question.

Thanks in advance

[dragonz]

It means that its being adjusted to consolidations, sharesplits etc

[Hoop]

The recent Nuplex consolidation is a good example

Adjusted



Unadjusted

Note the different price figures on the left hand side scale (y - axis)

Also note below (circle)...the artificial (false) buy signal with the MA crossing.

Using an unadjusted chart all TA indicators would assume this price jump (circle) as real and fire erroneous signals.

Note.... volumes traded aren't adjusted on these charts

[winner69]

Hoop - see what you are getting at but the adjusted chart looks different from the one that Phaedrus psoted on the NPX thread - post 481
http://www.sharetrader.co.nz/showthr...t=2979&page=33

His Y scale goes a lot higher than your chart

[Hoop]

Hoop - see what you are getting at but the adjusted chart looks different from the one that Phaedrus psoted on the NPX thread - post 481
http://www.sharetrader.co.nz/showthr...t=2979&page=33

His Y scale goes a lot higher than your chart

Well spotted..Yeah Winner.. I quickly wrote up this post using the simple direct brokering charts as I was on that site at the same time this morning....... that adjusted chart does seems wrong doesn't it.

Yeah...on Phaedrus chart at start of the y -axis side is the beginning of September 2008 the shareprice then was $6.40 so allow for consolidation = $6.40 X 4 = 25.60 exactly what Phaedrus chart says.... but the Direct Brokering chart says about $9.60...Hmmmm not even close.

I may write something about this on the Direct Brokering thread

[Jay]

Had a look myself as well Hoop

Untick the adjusted and price seems about right (taking in the consoldation) $6.40 at Sept 2008 basing it on Phaedrus' chart
Or am I misiing something??

[Hoop]

Had a look myself as well Hoop

Untick the adjusted and price seems about right (taking in the consoldation) $6.40 at Sept 2008 basing it on Phaedrus' chart
Or am I misiing something??

Yeah, true Jay...the unadjusted chart is correct up until the time of the consolidation.

However the unadjusted chart then shows a dramatic jump in price ( see the circled area of the chart in my previous post). This dramatic price jump from 40 to 1.60 is not real..and if the chart is left unadjusted the resulting TA indicators that use pricing in their formulae are therefore erroneous from that point on until that unadjusted pricing jump flows out of that indicators' system...the garbage in garbage out theory operates during that period of time, rendering those indicators useless. Same thing for DB superchart option as well.

[Jay]

Yes seee what you mean Hoop

We await a response from DB

[POSSUM THE CAT]

HOOP and others don't you have to take the capital raisings into cosideration as well the $9.60 sounds about right. But I am no genius at charting just a cat

[AliceSaville]

Hi everyone,

Something easy to get my teeth into - thanks!



It appears that there is more to these charts than meets the eye.

I’ve been advised by one of our web technicians that the NPX chart has been adjusted for two corporate actions – the consolidation you refer to above, and a tradeable rights issue.

To quote, the share consolidation “resulted in an unadjusted price movement from closing price of $0.41 to Open Adjusted Price of $1.64. The actual open on 18th was $1.60 (adjusted: down 4 cents).”

Secondly, "the September 2008 adjusted price also takes into account the effect of a 7:1 tradeable rights issue, exercisable at $0.28. This tradeable rights issue adjustment occurs 02/04/2009 (adjustment of about 0.373475:1 as advised by NZX) with an unadjusted price movement from closing price of $0.81 to open adjusted price of about $0.30.”

Put together, these two corporate actions result in an adjustment of 1:1.4939.
Hence the adjusted price of $9.56 and the unadjusted price of $6.40