Corrected chart OZM
Post# of 5
Posted On: 04/21/2014 6:07:44 PM
Ozm Chart
Historical Price Data for Ozm needs to be adjusted for splits, dividends and distributions which is really principle returned to owners.
StockCharts adjusts the historical price data to remove gaps caused by stock splits, dividends and distributions. That causes charts to be correct for future projections based on past price action
For example, if a stock splits 2-for-1, the price is suddenly half of what it used to be creating a large gap down on the chart. If you were unaware of the split, the chart would give you the impression that something bearish happened to the underlying company.
In addition, most of the technical indicators on that chart would give sell signals because of the big drop in prices. Even those such a split is generally considered a neutral event, an unadjusted chart would contain lots of bearish signals.
In order to prevent these kind of misleading signals from appearing on charts, whenever a 2-for-1 split occurs, we divide all of the historical prices for the stock by 2 and multiply all of the historical volume by 2 so that the bars prior to the split match up smoothly with the bars that appear after the split.
In addition to performing adjustments that remove large gaps caused by splits, we also adjust our historical data to remove smaller gaps caused by dividends and distributions. By making these additional adjustments, we ensure that all price movements on our charts are caused by pure market forces - i.e., the forces that Technical Analysis attempts to identify.
As all Chartists are aware, these adjustments are very important for accurate technical signals.
Historical Price Data for Ozm needs to be adjusted for splits, dividends and distributions which is really principle returned to owners.
StockCharts adjusts the historical price data to remove gaps caused by stock splits, dividends and distributions. That causes charts to be correct for future projections based on past price action
For example, if a stock splits 2-for-1, the price is suddenly half of what it used to be creating a large gap down on the chart. If you were unaware of the split, the chart would give you the impression that something bearish happened to the underlying company.
In addition, most of the technical indicators on that chart would give sell signals because of the big drop in prices. Even those such a split is generally considered a neutral event, an unadjusted chart would contain lots of bearish signals.
In order to prevent these kind of misleading signals from appearing on charts, whenever a 2-for-1 split occurs, we divide all of the historical prices for the stock by 2 and multiply all of the historical volume by 2 so that the bars prior to the split match up smoothly with the bars that appear after the split.
In addition to performing adjustments that remove large gaps caused by splits, we also adjust our historical data to remove smaller gaps caused by dividends and distributions. By making these additional adjustments, we ensure that all price movements on our charts are caused by pure market forces - i.e., the forces that Technical Analysis attempts to identify.
As all Chartists are aware, these adjustments are very important for accurate technical signals.
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