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> but what would a back adjusted bond be. Useless for anything I
> can think of except current price. What system would work on a bond
> prices at 10 or 15? The system would think you lost your digit.
Any system that only pays attention to relative price changes --
which includes most common calculations and indicators like
moving averages, MACD, ADX, RSI, stoch, you name it -- doesn't
give a flying flip what the price level is. It'll return the
same values whether the base price of the underlying is 1 or
1000000. Most things don't even care if the price goes negative.
Now anything that pays attention to absolute price levels --
which includes things like S/R levels, things like that --
definitely DOES care. You don't want to mess with price levels
if you use that kind of analysis.
As with many things, the "right" answer depends on your
prejudices. :-)
Gary
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