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S&P 500 moving averages


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Why is the 200 day MA at 2697 on my Cash chart while down at 2673 on Chris Beauchamp's IG Live chart and even lower on other sites? 

Effectively the value was 2694 and below the 200 day MA at 13:55.

What Am I missing?

 

Thanks,

D

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18 minutes ago, Caseynotes said:

Hi @D600   the answer is because one of you was using a simple moving average while the other was using an exponential moving average.

1966395279_US500_20180628_15_36.thumb.png.10cbe50f8450ea336b0f6e52fbb6aa40.png

 

It turns out that IG now has weekend trading so it turns out the extra two days are messing with the moving average. A bit of a pain.

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Hi @D600   no, if you look at the picture the 200ema hits 2673 at the same time as the 200sma hits 2697 (in shaded circle).

The 200sma is in orange and the 2697 level is in orange.

The 200ema is in grey and the 2673 level is in grey.

That is how at 13:55 on one chart the moving average was at 2673 while the on the other it was at 2697. Because one chart was using the 200sma while the other chart was using the 200ema.

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Hey Caseynotes,

To illustrate my point, check the difference between IG and the Stockcharts.com Chicago close. As you can see the 200 day MA has not been anywhere near that reported by IG. I have it on good account that this is primarily because of the trading weekend inclusion.

IGChicagoClose.png

S&PChicagoClose.gif

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Hi @D600,  all exchanges have different prices and therefore different MAs, IG derive there own prices depending on different price availability from different sources. The weekend prices are derived from the futures market.

Your original question was why were the MAs different between your and Chris's charts for the  S&P500 yesterday. Here is a close up showing the 200sma at 2697 while at the same time the 200ema was at 2673 (the two figures you quoted in your original post).

ma3.PNG.bfbde94e3960f2902a85905a3ec74c9e.PNG

 

  • Thanks 1
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Thanks @Caseynotes - @D600 yes I believe both those points are correct. First off there will be difference between the EMA and SMA which I think answers the original question. Secondly there will always be a difference on these values if you are using different pricing models and data feeds, so it's likely you'll see small differences when you're looking at different charts.

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Firstly I am very clear on what a MA and EMA is mathematically. No confusion there, or in selecting indicators on the IG platform. @Caseynotes it was you who introduced the EMA into this discussion.

I'd be surprised if you are saying Chris Beauchamp's used a EMA and referred to it as an MA.

Frankly I don't think he did.

Note he posted IG LIVE at around 10:40 and I played it back a little bit later. In discussing the S&P performance with a professional trader the day before, the location of the 200 day MA was clear in my head at around 2670. So when watching his review something did not look right to me. I then checked my chart and noted that the IG 200 MA was last at 2670 Friday last week. I then took the values I was seeing at around 13:55 to illustrate the point in my post here. 

Subsequently I heard back from the professional trader who confirmed IG moving averages are affected as mentioned above. I then posted again with this new knowledge - effectively answering my own question.

The difference between the two MA numbers, reflect the fact that @Chris Beauchamp was using what IG calculates as the 200 day MA on the US 500 cash market, the same one that clients also use. There is no EMA MA confusion or mix-up.

The bottom line is there is a HUGE difference between the "market" and the IG mirror market in this respect; an index trading above or below a key indicator such as 200 day MA. Obviously a magnitude I had not realised before, but then again I am not in the market very often.

Personally I believe this is too big to be effective and should be properly addressed. That of course would probably necessitate having an actual US S&P 500 and an All Sessions US S&P 500 market. Fat chance eh?.

I just bascially don't like having to do translations when listening to Bloomberg CNBC or professional traders discuss the S&P. If I was to trade the S&P seriously then I would want to have the key indicators imprinted in my brain and be speaking the same language and not have to do extra steps and second guess how other traders would be reacting to the market 'cos they are referencing different values.

Just my perspective.

regards

cc @JamesIG

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Hi @D600,  ok, I've found the discrepancy. The presentation used a PRT chart  but that should still use the same feed so there should be no difference with the IG platform chart.

Compare in the 2 pics below. In both the 200MA is in red but there is, as you say, a difference which ?coincidently? coincides with the value of the 200 EMA at that particular data point.

I wonder if there might be a bug @JamesIG? or is the PRT one calc'ed differently (using high/low rather than open/close)?

ma4.thumb.PNG.62e0bc5551c2baea00357d797798de0b.PNGma5.thumb.PNG.e28cde791f46abf9bc3bc91b2785d7ac.PNG

 

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