6 day bar charts?!

[benjamino613]

hi,
i have an issue which im wondering if any can help sort out.
some charting programs, for some reason offer 6 day bar charts (they add in a sunday bar).
this is done on the knowledge that while trading in the far east on a monday, it is still sunday here so therefore they add a bar representing that activity. my problem is as such: based on the grounds that traditionally the market is open 5 days a week, how can these charts show 6 days?
surely this not only ruins moving averages by adding an extra bar, can it not also give traders the completely wrong idea about trendlines ESPECIALLY if the 'sunday' high or low was more than the monday high/ low thereby leading traders to draw wrong trendlines at the wrong angles.
am i missing something here?
benjy

 

[benjamino613]

anybody?

 

[wackypete2]

Since no one else answered I''ll have a go. I don't trade daily charts though so you may feel my input is not relevant.

The sunday and monday should be 1 bar therefore it doesn't matter which bar the high or low was. The trendline will still be the same as if there were only 5 bars.

As far as moving averages, I don't have a good answer. The real problem is if you are using a 12 day ma for example, then you are not getting a true 12 days. You will have 10 days + the 2 extra bars. The best thing to do is compare the same daily moving average with a broker that doesn't have the sunday bar and see what the difference is and if it's negligible or significant. Remember, though, that all brokers show slightly different prices so you will never get an exact match.

The longer moving average you use the less significant the difference is.

I hope this helps,

Peter

 

[maxima]

you cant answer this cos it is not a question it is just a mess expressed in latin letters.

 

[benjamino613]

thanks for your reply peter. the thing is I was introduced to this problem by a trader who was extremely perturbed about it. He did contact a variety of different companies that do have 6 day bars and while some told him 'this is just the way it is' others seemed also extremely interested in a problem like this and a few were even 'grateful' and promised to look into why the companies refuse to acknowledge that by doing 6 bars you can end up with some funky calcualtions. surely if there is even only a small problem like u sed above, these 6 bars should be changed for the correct 5 bars?

Sorry maxima, my trading experience ( and therefore knowledge of how to correctly phrase trading questions) is as stated previously quite negligible. perhaps you could tell me a better way to phrase it would have been?
thanks
benjy

 

[TheBramble]

Who is giving you 6 daily bars per week? Which charting software? Which exchange or asset data are you charting? Where are you based geographically?

I'm asking on the basis that this is the start of a really good joke and I want to be in on the beginning....

 

[wackypete2]

Who is giving you 6 daily bars per week? Which charting software? Which exchange or asset data are you charting? Where are you based geographically?

I'm asking on the basis that this is the start of a really good joke and I want to be in on the beginning....

Some metatrader brokers have an extra bar that represents sunday night. I don't pretend to understand it but it has something to do with the difference between the brokers server time and gmt or metaquotes time I think. An example is Interbankfx. For that broker it's only a problem if you use daily or H4 bars, otherwise there's no issue.

Peter

 

[benjamino613]

surely as a matter of principle charts should only show 5 days no matter how small a difference it is?

 

[glyder]

I dont think it matters its only another representation of slices of prices.

 

[maxima]

I'm asking on the basis that this is the start of a really good joke and I want to be in on the beginning....

at least something is not related to vendors... unless this guy doesnt sell witty sunday filter for charts. i hope not