IG Index Charts Conundrum

This is a discussion on IG Index Charts Conundrum within the Spread Betting & CFDs forums, part of the Commercial category; Can anybody explain something about my IG Index charts that been puzzling me. When I plot a simple moving average ...

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Old Jun 3, 2010, 11:54pm   #1
 
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Joined Jun 2009
IG Index Charts Conundrum

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
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FT Chart
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Ecube Chart
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Old Jun 4, 2010, 12:33am   #2
 
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Re: IG Index Charts Conundrum

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
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Old Jun 4, 2010, 9:07am   #3
Joined Aug 2009
Re: IG Index Charts Conundrum

Quote:
Originally Posted by Waterfield View Post
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?
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Old Jun 4, 2010, 9:51am   #4
D70
Joined Nov 2009
Re: IG Index Charts Conundrum

Quote:
Originally Posted by pdriver View Post
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
Click the image to open in full size.

FT Chart
Click the image to open in full size.

Ecube Chart
Click the image to open in full size.
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.
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Old Jun 4, 2010, 10:00am   #5
Joined Jan 2010
Re: IG Index Charts Conundrum

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.
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Old Jun 4, 2010, 10:01am   #6
Joined Nov 2008
Re: IG Index Charts Conundrum

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?
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Old Jun 4, 2010, 10:13am   #7
D70
Joined Nov 2009
Re: IG Index Charts Conundrum

Quote:
Originally Posted by Jack Hughes View Post
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.
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Old Jun 4, 2010, 10:46am   #8
 
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Joined Jun 2009
Re: IG Index Charts Conundrum

pdriver started this thread 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.
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