lol at the rate I'm going I'll be a top 100 poster in 2012, sorry meant 2021 :)
Cheers Stu
A paste from yesterdays thread so I'm first in line rather than everyone miss it.
>Miss Dreadfool if I'm able to help then it is my pleasure - besides, you're the spitting image of my ex wife in her prime so how could I not help.
Time for me to have a little gripe re TA and data sources and platforms etc. I see some good work here, some of it is very good. I also see some absolute garbage. There are two things that anyone with an interest in TA must have -
1: Excellent data - I mean tested to be without fault. (what you see on the chart is a representation of the numbers behind it, if they're wrong then everything becomes wrong)
2: Software to read and work the data. Lots needs to be said here but all it boils down to is that if your software isn't good then neither will your work be.
CFD data - what's real and what isn't. Firstly where you read the words 'Data is Indicative', please read this as really saying 'Data is Made Up'. All charts with these words are nothing more than a simulation of the underlying. At times they will track closely, other times they will just be nuts. GJ's comparison earlier between IG and CMC was spot on and I found it to be the same a few years back. The CFD provider create the instrument - a CFD is an articial instrument, as is the data it presents.
200 - Every man and his dog now has a 200 something that he can trade. It has become the highest tradable product of all CFD providers. There are however only two things that matter, the XJO which is the only tangible instrument, and the SPI which is the only non tangible instrument directly connected to the XJO. The two are connected and feed off each other, just when you think the SPI calls the shots, the physical will start leading the way and vice versa. The 200 instruments offered by CFD's are based on the SPI and the XJO. As a guide most are intended to track the physical during market hours and the SPI after hours, although this is only a guide and other factors do come into play such as what's going on O/S. The XJO is less volatile which is why spreads are tighter during market hours.
Next thing I'll say is a bit sensitive and forgive me for being a little vague - I know two guys ex big CFD company. When the issue of technical stops comes up it has been mentioned that CFD companies like making stops so - well lets just say easy for the user, transparent also means easy I think.
CMC were basically the first CFD provider to hit Australia and for a while they pretty much had things to themselves - in their early days they destroyed their reputation with wild spreads and random gaps appearing where stops were meant to be triggered. These people are here to smile at you and make money from you, trust me they are much better at making money from you than you are at making money from them.
Back to charts - I cringe a little when I see so many CFD charts being uploaded. While there are little pockets of good, on the overwhelming majority they are shite. For a general snapshot with maybe some long term averages they can be fine but for anything precise do not trust the data you are working.
I tend to ramble more at night when I'm wide awake - sorry
ps:90% of the above obviously does not apply to DMA.
(20min delay)