I wanted to start a topic here under the general discussion of TC2000 version 12.2 to address a situation that I not only find annoying but which also results in producing inaccurate charts. I have been posting to the "Mutual Funds and ETF's" topic in the Stockfinder 5.0 general discussion area where those who are interested can follow the conversation that I have been having with the excellent Worden Trainer, Bruce L. I wanted to post here to inquire as to whether other users of TC2000 have noticed the same thing and if it has affected their use of TC2000. 

What I am referring to is the lack of distribution adjusted prices and charts for stocks and ETFs in TC2000 (I understand that mutual fund prices are adjusted for distributions). What happens is when the charts are not routinely adjusted for distributions, they can display large price drops, depending on the size of the distribution, which leads to the generation of misleading indicators and inaccurate charts and signals. For an example of what I am referring to, look at the chart of EWA and the 3% price drop on 12/18. EWA was actually UP on that day by a small amount but the drop as displayed in TC2000 shows a very different picture. The indicated drop in price as shown in TC2000 has resulted in many of my indicators turing negative; but when using charts that ARE distribution adjusted, EWA remains in a sideways, but still positive pattern. This situation has happened to many ETFs (which I trade almost exclusively) and a great many of those charts have been adversely affected or soon will be (There are a slew of distributions occuring on 12/24). I checked the discussion forum archives and discovered that there was concern about this way back in 2004! To date, it is just business as usual! What this also means is that for all of the data points over the years which do no not include distribution adjusted data, the accuracy of those charts is questionable. All of my observations really apply to those who utilize technical analysis. If your primary discipline is fundamental analysis then this issue would not be a major concern, if at all.

In light of the foregoing, I can't use TC2000 to trade these securities anymore because of the misleading data and inaccurate charts. I have to rely on other sources to evaluate currently held positions because of the faulty charts in TC2000. I am a relatively new user and I have been otherwise pleased with the functionality of TC2000 but this issue for me is major and a deal breaker. I am just astounded that a company that has received so many accolades falls short on this basic principle. As a result, I have been evaluating other charting services/programs that DO adjust their data and charts for distributions (which I won't name here out of respect to Worden on their discusion boards). 

What I have received so far from the company is that the data and charts are not routinely adjusted but can be if requested and if the price drop is large enough to affect the chart!! Not only is it vaguely subjective as to whether the charts will be adjusted but this is not done routinely! But my request to add this "feature" has been forwarded as a suggestion for inclusion in a future update. It remains this way after at least 8 years so this is apparently not a high priority item.

What has been the experience of other users (technicians)? Is this a concern? How do you handle this situation? I will be interested in any feedback on this or maybe most users just don't see this as a big problem (fundamentalist, longer term investors). If enough users express concern about this situation, maybe the powers that be will take notice. Since the name of the product is TC (TeleCHART) 2000, I would think that users of this service would prefer accurate charts!

Charles

If you use think or swim its the same

P. Charts are always adjust where as TOS charts do not get adjusted, so if you are useing think script scans you would get the same because they are run on TOS Charts

Also I only use technicals, and scans just narrow it down, You still have to use your brain and make the final decission, its not a black box

Thanks for the feedback! You are certainly correct, there are a number of widely know technical analysis software packages that don't adjust their data to reflect distributions. Depending on your time frame, that results in distortions on your charts that can lead to misleading signals. I don't trade with a black box method (and those that do would be getting numerous false signals) either but this lack of adjustments will certainly affect your ability to trade your systems accurately because of misleading indicators. Until I finish my evaluation of other sortware that provides accurate charts, I have found some substitutes that will allow me to trade using my current signals. Good luck with your trading!

Charles