What is Singapore stock data adjustment?

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

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

Data adjustment provided by the data vendor displays the correct outcome