A continuation chart is constructed from several futures contracts. The prices for different contracts are usually not equal, even on the same day. Therefore, when rolling from one contract to the next, price gaps would appear on the chart on rollover day. When you use technical analysis tools (such as indicators or signals) on a continuation chart, these gaps can hinder the correct interpretation of the price movement. To eliminate the gaps, the prices of all older contracts can be back-adjusted.

When you use adjusted prices, only the current contract is shown with its real prices. For all older contracts, adjusted (synthetic) prices are used. This means that the prices you can read from the chart for older contracts are not equal to the actual prices of these contracts at the shown date.

Back adjustment of prices is done by calculating a price difference between the old contract and the new contract on rollover day. All older contracts are then adjusted by this difference. Only new data is added to the chart with its actual prices.

You can determine if the historic prices should be adjusted at all, and if yes, by which method (absolute adjustment or percentage adjustment). If the prices should be adjusted, you can choose how the price difference between the old and new contract is calculated. The price difference is always calculated with daily (end of day) prices, even if you use an intraday continuation chart.

▪       Right-click on the chart and select Properties.

▪       On the left side of the dialog, select the name of the chart pane, the name of the symbol and then Continuation. For example: Pane 1 > FDAX 2009H,CC > Continuation.

▪       On the right side of the dialog, choose an option from the Accumulation list:

Back adjust	The absolute price difference between the current contract and the previous contract is added to or subtracted from all older contracts.
Percentage adjust	The price difference between the current contract and previous contract is calculated as a percentage. The prices of older contracts are adjusted by this percentage.
No adjustment	The prices of older contracts are not adjusted to the price of the current contract. Gaps may be visible in the chart on rollover.

▪       Choose a Pricing option from the list to determine how the price difference between the current contract and the previous contract will be calculated:

Close old contract, close new contract	The Close price of the current contract is compared with the Close price of the previous contract on the same day.
Open old contract, open new contract	The Open price of the current contract is compared with the Open price of the previous contract on the same day.
Close old contract, open new contract	The Open price of the current contract is compared with the Close price of the previous contract from the previous day.