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I'm confused about charting and testing Quotes Plus mutual fund data in
Metastock, and hope that someone might clarify some things for me.
My understanding is that when a mutual fund pays a dividend, the NAV will
fall proportionally. What I don't understand is whether the data is, or
should be, adjusted so that the charts will not be "distorted" by an
apparent drop in price which is really just a distribution. That is, if
you have Metastock formulas and system tests that trigger on price, how
can you make them differentiate between an actual price drop in the fund
which is not caused only by the distribution. In other words, it seems
that it may not be good to say, signal a sell because of a price drop due
to the distribution only.
If it turns out that the prices must be adjusted to accommodate this
problem, I can't see how to do this for some 8,000 funds. I hope someone
can provide better insight than I have on this problem, if it is indeed a
problem.
Thanks,
Leo
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