I just want to start tracking vanishing price labels on the SC charts so I get a feel for how often it happens. This will probably just be for stocks I buy, because I will snapshot the buy and sell screens.
The Stockcharts FAQ says price labels just mark significant highs and lows and that they will be readjusted. They will never appear on the right-most candle (that is, today’s candle), because they are only applied once the future is known. It appears this can even happen to very old price labels.
People need to know this is an issue to account for, especially when looking at an historical chart that perfectly shows 100% accuracy of the price labels. This is because imperfect price labels get purged.
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Here are my snapshots of XLU. It had a price label on the buy signal, then I sold it went the chart went south (no sell label). Then I looked at it today and the price label was gone.
Here is the COST chart. Quill mentioned he bought and sold on the dates I marked with a red line. (Jan/Feb 2024). I assume he used price labels as signals, because the was the whole point of the discussion and example.
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I’ll throw in one more for good measure: CRWD, which currently has an upper price label that would have triggered a Sell. I suspect if a new high gets made in the near future, the price label goes away. It certainly would on Barcharts.
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The usual, when price goes below a recent low-label, that low-label is remove.
I guess the pattern and the evidence is clear, Stockcharts removes labels all the time. Historical charts will have 100% accurate labels because inaccurate labels have been removed. You cannot use an historical chart as evidence that labels provide an easy to use and understand trading system.
I will stop posting on this thread.
Pete
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