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Does moving average take into account price splits?

5 years, 11 months ago 862 views

Hi Ivan,

not sure if this is just the chart that is wrong - or if the same values are used to check MA for calculations.

Hope this helps and thanks for overall a really great website.

Thanks,

Pawel

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3 replies

5 years, 11 months ago

Great - thanks for fixing this!

5 years, 11 months ago

Hi Pawel,

I've updated the view for the moving average parameters to use the adjusted close price.

This would account for stock splits and dividends so we should not see the jump in prices from now on.

Many thanks for your feedback.

Ivan

 

5 years, 11 months ago

Hey Pawel,

Thanks for pointing this out. For backtesting I use the adjusted close price which accounts for splits and dividend payments.

This plot here is only for display purposes where I use the close price that's why you see the large jumps during splits. I will switch over to using adjusted close prices as well which will resolve the issue. 

Kind regards,

Ivan