Beginner traders might think that all chart packages are the same… but they are far from it. If you look at these charts beneath you will see that they are all of the same currency pair AUD/CAD on 4 hour bars.
However, all of these charts are slightly different.
This isn’t such an issue if you are trading long-term and using daily charts/candles. But for the short-term trader it can pose confusion, especially if you don’t actually know that all charts are not identical, so it’s worth taking note of
You need to look closely. But the candles and patterns are different in places.
I have questioned this with IG and Sharescope and they confirm that the differences are because of the way that they receive their data and the sources the data come from.
When I first noticed this, I sent pictures [screenshot of the discrepancies] to IG. After they gave me their reasons for the differences, I checked the chart again and the actual candle in question i had pointed out to IG had been changed to mirror the results on the other chart that I had compared it to.
Why they [IG] done this I don’t know, however you must be aware that all chart packages are actually different and will supply different data.
Are Traders Being Hamstrung?
My first impressions of these chart contradictions were negative.
I immediately jumped to conclusions that there was some sort of conspiracy to manipulate short-term and new traders.
However, I don’t think this is the case at all. I do just think that the data is delivered at different speeds and times from company to company and source to source.
Stay With the Same Chart Packages
If you are continuously using the same chart package, then these variations obviously make no difference to you as your results will be consistent.
The main point to take from this is that your results will or can get affected if you are switching from chart package to chart package. These results may be positive or negative.
So when it comes to using the various charging packages, it is best to find one that you are at ease with and stay with them. They all have their own little quirks and differences and that doesn’t just stop with the data.
If you begrudge paying for chart data then just use the free ones on IG or any other platform like yahoo, tradingview or even googlecharts and stay with them.
If you want charts with a bit more oomph that offer something more than the free ones, try share pad. I do like these charts and they also have the VIDYA indicator added [very useful if you are trading with Vince Stanzione].
Prorealtime charts are also very good but there are differences from the sharepad platform that do not suit me. On the contrary, there are features on sharepad that are better on prorealtime. Although sharepad still edges it for me.
Someday there might be a chart package that is perfect for me… for now though, I’m staying with sharepad.