I am in the very early stages [and I mean very] of learning about charting. Hence I would welcome responses that are not too technical - in the hope that I can understand them.
My understanding is that the MA line on a chart is based on historical SP data.
Does this mean that some sudden circumstances in trading, such as a share split, can cause the MA to be distorted for a period of time? For example
1. The 6 month chart for CSL - was this temporarily distorted due to the share split? Similarly
2. Is there a distortion in the 12m MA chart for TOL – due to the AIO development and again after the Virgin Blue announcement [see a 3m chart].
I was thinking I was on the right track and then checked the FMG chart expecting to see a distortion following their 10:1 share split -- but couldn't see one.
I hope I've made myself clear. If not please be gentle with me....