Grandrake (GR) raises a very interesting point about the way StockChart interpret the calculation of Tenkan sen. It was posted on the kumotrader forum.
Just noticed this week that Stockcharts’ weekly plot for Netflix (NFLX) had a problem with the Kijun line (not verified if the problem extends to all other lines – I’d believe so, if they used the same formula).
In comparing the Stockcharts plot with those in ThinkOrSwim, ChartNexus and FreeStockCharts, I find that the Stockcharts plot seems to be a week slow. In other words, while the rest of the systems show an uptick in the latest Kijun line, Stockcharts still shows it as flat.
So I’m trying to recalibrate my understanding here:
My understanding is that, in plotting the Tenkan/Kijun lines, we should start counting the 9 or 26 periods starting with the latest closed session. Am I right? It appears to me Stockcharts plot for NFLX (not sure if it extends to others, I’d think so though) started counting from the session before the latest session and hence was 1 session late.
I’ve sent a query to Stockcharts support on this, but would like to see if I stand to be corrected for the period counts. If Stockcharts is right with the counts, then everyone else is wrong, and vice versa. So
The key point here, it seems that StockChart is plotting the Tenkan sen one period later.
You can see here (example provided by GR) that AMZN Tenkan sen is flattening.
And here’s one from Thinkorswim (TOS).
What is the implications of this?
If StockCharts is wrong, then relying on StockCharts Weekly Chart or Monthly charts can set you back by one week or even one month. In other words, you are receiving the signal one week later than others.
But, if StockCharts is correct, that means others like Thinkorswim or Chartnexus are wrong.