Back Adjust futures contract roll for charting?

For the technical analysts out there, do you back adjust your charts for the contract roll difference or do you leave prices as traded? This would make quite a difference when trying to define levels from previous contracts. I am specifically asking in relation to equity future charts. Thanks!

 

There is no price difference in the "roll". The price doesn't suddenly SHIFT from one day to the next on expiry week. It all flows together.

 

Yes I understand that but I am talking for charts, if you have a chart with multiple contracts there is a gap. Is it best practice to adjust this gap or keep the prices unadjusted

 

Nah. When the roll occurs in that week, it all melts together. During the next roll between the June and Sep contracts in second week of June, keep those two charts up side-by-side and watch it. You will find very little difference. Nothing to lose sleep over.

This year, the second week of June will be what they call the "roll". But it is not abrupt, it is gradual, because it is the third week of June where the volume flips. Prices will merge. Keep an eye out.

 

Hey Roller,
If you are working out the ramifications of back adjusting...
Here's a place to get started.
https://www.sierrachart.com/index.php?page=doc/ContinuousFuturesContractCharts.html

 

Thanks, I am using Ninjatrader and just trying to get my head around what is the best practice. For example this is the difference in the charts on the Nikkei when it rolled on March 11 when compared to the unadjusted chart in trading view. The area in the box on the trading view chart is the difference in the contracts where in NT this has been adjusted

 

I don't have that 'problem'.
Because the s/w I use (Esignal) doesn't have that feature.

it'd only ask me
which is the rolling front months / which is the fixed month,
how many days before expiration / month of expiration,
which months to be included in the continuous contract.

If I see gaps in the continuous contract chart, I'd adjust the above parameters.

 

Yes I understand why it is but I'm not sure what I 'should' or whichone most people use.

I am not one for indicators and things like that, but trying to identify levels on the chart over longer periods of time this could make quite a difference.

Thanks the information

 

You need a search engine?

 

Mate, I have already look this stuff up I just thought I would ask the question here. Some experienced traders might have an insight I might not find somewhere else.

All good