Misleading charts

[dldtaylor]

Hi everyone

Thought I would just post my thoughts on how misleading Betfair charts can be compared to the charts generated by Bet Angel. As a 'chartist' I like to see familiar setups, and today there were several that I took advantage of. However, if I was only looking at Betfair charts I would have probably not have seen the opportunities. The reason being that Betfair charts are tick charts - in other words they record every price movement - rather than the movement of a price within a specific time frame. This often has the effect of 'elongating' a chart (particularly in the run up to post) as more participants join the market and the price fluctuates more frequently.

I've attached an example of what I mean. The Bet Angel chart is 30 second chart, and the blue line is a 50 period EMA. It's a very common setup which I regularly use, i.e. a trend which then pulls back to the 50 period EMA followed by a continuation move in the direction of the trend. However, you will see that the very clear pattern in the Bet Angel chart is barely recognisable in the Bet Fair chart.

And before you ask...yes I did get the move!

I hope this helps someone.

[SeaHorseRacing]

I personally never use a chart to open a position. I only use a chart as a guide.

[Euler]

I'll look at Betfair charts initially for a quick view on the market but switch quickly to the advanced charts. The Betfair charts have always suffered from that 'elongation'