What does it mean when an indicator repaints?

  1. hi all, i want to know what it means when an indicator repaints…

  2. do all indicators repaint?

  3. if an indicator repaints, how can we solve this problem?

maybe can show some examples??
thanks in advance!!

Indicator repainting is a term used to describe an indicator repositioning its line at the point where the current price bar is forming.
Most indicators do this to some extent unless they are applied to the open price.
If the indicator is applied to the close price as most are by default, the indicator will use the last price quote recieved as a psudo close price until the bar finishes forming this means the indicator can change its position on every new price quote while the price bar is forming.
It is most noticable if the indicator is created from a low number of periods.

For an example, lets say you have a 10 SMA applied to the close on the 5min chart. You’ll be watching the end tail of the MA moving up and down until that bar closes. In hindsight, direction always looks clear with the MA but such is not true in real time.

Repainting can be a big problem while working out a trading strategy.
If you set up some indicators and look at the chart history it can be quite decieving, what may appear in the historical chart to be a great indicator that seems to create good signals on your chart when the lines cross, can actually turn out to be nowhere near as good in live trading because the historical chart only shows that indicator in a frozen moment in time, at the end of each price bar formation.
In practice you may find the indicator lines cross and uncross several times during each bar formation, rendering that indicator close to useless due to constant false signals that dont show on the historical chart.
This is one of the failings of the usual methods of time frame chart trading with indicators.

can we just simply wait for the candle to close completely? with that, no more problem rite? :confused:

[B]SDC[/B]

thank you for the explanation on repainting with an indicator. From your explanation above it also shows the problem of using an indicators to trade live.

Using your example of a line crossing and uncrossing within the formation period, do you think therefore that if the indicator was using the “open” price, rather than the “close”, it would then show purely the historical situation and perhaps not lead us into temptation?