Graphing issue - Help please

[shyguy]

Okay so I am new to the stock market but have done a lot of reading.

Currently I am utilising graphing from ASX, theage, and commsec.

The issue I am finding is when I am trying to compare a share to the All Ordinaries and the required industry sector.

In all three of the sources above when i bring them up on a chart togather to compare them in relation and look at the crossovers, if i change the timeframe eg. 1 month and then 1 year it changes the result in relation to eachother... i think it could be because it is changing it to a percentage value on the y-axis and hence the timeframe effects the average representation...?

essentially i want to check how a share is performing in relation to its sector and the AO...

 

[KurwaJegoMac]

Okay so I am new to the stock market but have done a lot of reading.

Currently I am utilising graphing from ASX, theage, and commsec.

The issue I am finding is when I am trying to compare a share to the All Ordinaries and the required industry sector.

In all three of the sources above when i bring them up on a chart togather to compare them in relation and look at the crossovers, if i change the timeframe eg. 1 month and then 1 year it changes the result in relation to eachother... i think it could be because it is changing it to a percentage value on the y-axis and hence the timeframe effects the average representation...?

essentially i want to check how a share is performing in relation to its sector and the AO...

I don't think what you're describing is an issue actually because it's working as intended. The reason being is that when you compare stocks/indexes using say a monthly time frame, your data points are limited to 1 data point per stock/index per month. Whereas if you switch to a weekly graph, you're now comparing 4 data points per month so you're getting a different view (although the values at the end of month should correspond with using a monthly time frame for comparison)

If your figures present weird anomolies when comparing results at week 4 with a monthly result, you need to ensure you're not manipulating the data in any way (say converting the data into a percentage change or using the average). Reason being is that the percentage change between two monthly values is calculated using only two values (end of month 1 and end of month 2) however using it on a weekly basis you're using four values to calculate percentage change/average change (i.e. Week 1, week 2, week 3, week 4)

So you need to ensure that you either don't manipulate the data before plotting (as in manipulate with some sort of arithmetic) or you ensure you compare results across a consistent time frame (i.e. only ever looking at a comparison of stock, sector and index using a weekly time frame).

So you're doing the right thing overall, just need to decide which approach you want to take in order to ensure consistency.

Hope that helps!

 

[shyguy]

cheers for the response!

however I am only looking at it as a daily chart. but when i change from 1 month of daily values to 1 year of daily values, the position of the XAO changes in relation to the candles of the share i am reviewing...

 

[KurwaJegoMac]

cheers for the response!

however I am only looking at it as a daily chart. but when i change from 1 month of daily values to 1 year of daily values, the position of the XAO changes in relation to the candles of the share i am reviewing...

Are the candles based on hi-low-open-close? You're not looking at % change?

 

[shyguy]

standard candlestick (high low open close).

go to the following - http://hfgapps.hubb.com/asxtools/Ch...&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=D1

hopefully it gives you the correct graph and then if you change it to say 3 month then the candles are in a different location relative to the AO... and if i go to theage and graph it with share, AO, and industry sector then they all change about with regards to eachother...

im assuming its because ranges change as they are different for the share values and the AO... but then what i dont understand is how to tell how the share is trading against the AO and industry sector...

 

[KurwaJegoMac]

standard candlestick (high low open close).

go to the following - http://hfgapps.hubb.com/asxtools/Ch...&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=D1

hopefully it gives you the correct graph and then if you change it to say 3 month then the candles are in a different location relative to the AO... and if i go to theage and graph it with share, AO, and industry sector then they all change about with regards to eachother...

im assuming its because ranges change as they are different for the share values and the AO... but then what i dont understand is how to tell how the share is trading against the AO and industry sector...

Ahh now I see what's happened - Back in November and December AAE traded around the 0.012 mark. So the y-value axis on the right hand side has a bigger range (starting from just under 0.012) whereas in the 1 month view the stock traded just below 0.016 and therefore the axis starts from 0.016. This causes the issue when trying to superimpose the two graphs as a price of 0.016 for AAE does not equal 4830 for the XAO during the 3 month view (but it does for the 1 month view)

The problem lies with the way in which the graph is charted. Because neither the left nor the right axis are fixed you'll have this issue whenever your range of prices change (because your axis range will change and they will no longer line up the same way)

To overcome this issue, you need to fix your y-axis. I.e. have the left one permanently at a range of say, 3500 to 5500 and the right one in a range of 0.01 to 0.05. Then you plot the values for those two stocks on the fixed axis and then no matter what time frame you pick the axis will always align in the same spot (i.e 0.01 on the right axis will always equal 3500 on the left axis)

Basically you'll need to plot these values yourself in another program on fixed axis to overcome this issue.

 

[shyguy]

okay... yes thats what i suspected was happening... thank you for the confirmation!

the same thing happens for theage and also commsec...

so im assuming to track this properly i will need to go with a third-party charting software...?

 

[KurwaJegoMac]

Yes you'd need to go with some sort of third-party software that will allow you to set a fixed range for the graph.

You can do it in excel if you have the data points, otherwise there are a few free apps you can do that for - do a search for free charting software on ASF.

 

[shyguy]

well i am currently looking into third-party software (as i stated in another thread)... but mainly looking for the kind where you pay on a monthly basis... dont want to spend a large chunk of money on charting software at this stage...

is it pointless trying to use the free ones compared to what you get for paid versions?

 

[KurwaJegoMac]

If you after very basic graphing (like what you're doing here) and you've only just started then there is no point in forking out money for an app. There are plenty of free apps that will do that and more for you.

Until you know what sort of features you want in the app, it's not worth buying one. As you get more experienced and know what sort of charting yoi require, then buy charting software that meets your requirements

That being said, your data source is very important. Free data doesnt have the same integrity as paid/subscription data. You can still get by on it, but it's not good for back testing or system design. You can use paid data with free charting apps too. So basically dont rush out to buy one yet as there are plenty of good, free alternatives that will meet your needs until you become more advanced.