What is Singapore stock data adjustment?

admin — Wed, 01 Jul 2009 03:16:16 +0000

Stocks go through corporate actions that change its value and create gaps in the price chart. These corporate actions are usually placements, special dividends or bonus and stock splits or consolidations. Gaps in the price chart creates kinks in the indicators that we use. As a result, the signals produced in turn can lead to wrong evaluation or decisions. Adjustments to the data remove the gaps that creates the kinks.

Corporate action creates a gap in the price of Aqua-Terra; the MACD indicator displays a kink

Data adjustment provided by the data vendor displays the correct outcome

Reliability of price data

admin — Wed, 01 Jul 2009 02:32:12 +0000

Data is very important to a chartist. If bad data was used, garbage in garbage out. In order to determine how effective the data source is, a chartist has to determine the following:

1. Reliable data

a. Get data that is supplied by a credible source, such as a reputable vendor or even directly from the stock exchange
b. Take steps to check the data against other sources for consistency

2. Data adjustments

a. Check whether back data is adjusted for corporate events such as special dividends, placements or stock splits
b. Ask how quickly data adjustments are provided
c. If unsure, write to the data vendor for advice
d. Paid data usually surpass in quality and usefulness compared to free data; data vendors know the importance of customer’s concerns – for a fee.

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Sources of reliable data:

Yahoo! Finance (free; up to 50 exchanges but data for Singapore not adjusted)
Analyst’s DataServer (One-time fee for Singapore EOD adjusted data and global indices)

Singapore - AmiBroker - Singapore & US Stock Charting Software » data adjustment

What is Singapore stock data adjustment?

Reliability of price data