Repainting indicators on the stock exchange: What is it, how and why is it created? Why it happens?

Repainting indicators on the stock exchange: What is it, how and why is it created? Why it happens?

In this article we will explain What is Repainting indicators on the stock market: What is it, how and why is it created? And why it is dangerous and why it can significantly confuse inexperienced but also more experienced traders who do not understand the programming of indicators and how they work inside. Why can indicators and strategies that repaint look great when looking to the left – but they are useless for the past and dangerous for the future. We will also explain the difference between repainting and rendering only after closing the candle and why this can also be a problem – we will also explain the difference between lagging , leading indicators and the difference between real-time rendered indicators and indicators that render only after closing the candle, that is, they plot the updated value if, for example, a 4-hour or 1-day candle ends and that is why they affect the view of the past.

Other chapters of the article are, for example:

Why repainting is a problem, what are they

Misleading signals

False security

Difficulty with backtesting

How to avoid repainting ?

Choosing the right indicators

Testing and verification
Indicators drawn only after closing the candle
Lagging vs.​ Leading Indicators

Lagging indicators

Leading indicators

Real- Time Indicators vs. Indicators Plotted after the Close of the Candle

Let’s explain for example: The problem with drawing after the close of the candle is that traders may miss the opportunity to enter a position in real time, since the signal only appears after the close of the candle. This can be disadvantageous especially when trading on lower time frames where a quick reaction is key, but also on higher ones (such as 4 hours, 1 day or 1 week when the indicator is drawn very late after closing the candle , e.g. on the next day or week, although in the past the indicator appeared as if rendered in real time)

The story continues…

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