Many traders and investors notice differences between indicators on their personal charts compared to those displayed on Investing.com's platforms. These discrepancies are normal and can be explained by several technical factors that impact how chart indicators are calculated and displayed.
Understanding Indicator Differences
When you're analyzing market data using technical indicators, consistency is important for making informed decisions. There are three primary reasons why your indicators might look different from those on Investing.com's charts:
Different Indicator Methods
Indicators can be calculated using various methodologies, each producing slightly different results. For example:
- Moving Averages: Simple Moving Averages (SMA) assign equal weight to all prices in the calculation period, while Exponential Moving Averages (EMA) give greater weight to more recent prices. This fundamental difference can cause the lines to appear in different positions on your chart.
- Stochastic Oscillators: Fast stochastic oscillators respond more quickly to price changes, while slow stochastic oscillators apply additional smoothing. The choice between these methods significantly affects how the indicator appears and the signals it generates.
Varying Indicator Settings
Even when using the same type of indicator, differences in parameter settings can cause variations in appearance:
- RSI Period Length: Using RSI with a period of 14 versus a period of 21 will produce different results. The shorter the period, the more sensitive the indicator becomes to recent price changes.
- Price Data Selection: Moving averages can be calculated based on different price points - close rates, open rates, or combinations like typical price. This selection affects the resulting indicator line.
Chart History Differences
Historical data discrepancies can also lead to indicator variations:
- Different Closing Times: Markets in various time zones close at different times, which affects daily candle formation.
- Bar Count Variations: The number of bars/candles included in your chart history can impact indicator calculations.
- Missing Data Points: Gaps in historical data can cause indicators to calculate differently between platforms.
Getting the Most from Investing.com Charts
Understanding these technical differences can help you make better use of Investing.com's charting tools. If you need exact consistency between platforms, make sure to check and match the indicator settings on both your personal charts and Investing.com's charts.
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