Should I Be Using Adjusted or Unadjusted Price Data?

When a company pays a quarterly dividend, that means the stock price is reduced and that difference is paid out to investors as a dividend payment. So should we use adjusted data (that adjusts for these dividends), or unadjusted data (which shows the raw historical prices)? We'll show you how prices are adjusted for dividends, how that could impact the technical indicators you use, and which answer may be right for you and your investment process!
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Dave helps active investors and financial advisors make more informed investment decisions, inject more discipline into their investment process, and enrich relationships with their clients. Feel better about making better decisions!
Dave is the Chief Market Strategist at StockCharts.com, where he helps investors minimize behavioral biases through technical analysis. He is a frequent host on StockCharts TV, and he relates mindfulness techniques to investor decision making in his blog, The Mindful Investor.
He's also President and Chief Strategist at Sierra Alpha Research LLC, a boutique investment research and consulting firm focused on managing risk through market awareness. He combines the strengths of technical analysis, behavioral finance, and data visualization to identify investment opportunities and enrich relationships between advisors and clients.
Dave was previously a Managing Director of Research for Fidelity Investments in Boston, a Past President of the Chartered Market Technician (CMT) Association, and started in the financial industry just after the March 2000 market top at Bloomberg in New York.
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[@bullbearjeff]

You didn't mention the differencescin moving avg values. Like 200 day could be very diff for adjusted vs non adjusted. Even $spy pays a div which affects that MA. If we use 200 ma as support, is it best to use adjusted prices or not? Thanks in advance Dave ❤

[@DKellerCMT]

Great question. Adjusted/unadjusted data affects all technical indicators, from moving averages to RSI! Will work up more content on this. D

[@Peter_Derby]

Dave do the same principles apply for futures adjusted data ? i.e. support use un-adjusted, indicators use adjusted

[@DKellerCMT]

Very different animal actually, as there are different schools of thought on rolling on futures contract to the next! Will put on the list for a future video D

[@BigHorseman]

Thanks so much for doing this, my friend. Have a wonderful Christmas with your family. Next year let's crush the market again!

[@DKellerCMT]

Cheers and Happy New Year!! D

[@SpooksMcGoose]

Best of luck making it to 10k subscribers! You're so close

[@DKellerCMT]

We did it! Thanks for your help D

[@bullbearjeff]

Very useful video dave 🎉

[@DKellerCMT]

Cheers and thanks so much for watching! D

[@njjjjjjjjhhhs]

👍

[@DKellerCMT]

Thanks so much for watching! D

[@infodrew3789]

Holy Jesus, get to the point

[@DKellerCMT]

Thanks so much for watching!! D