When back testing indicators they need to be done on the adjusted close price, or else stock splits could send the system haywire.
If you look at any historical information they give you
open | high | low | close | vol | adj close
But some technical indicators need the high/low/vol and these haven't been adjusted.
Has anyone come across this problem?
Can you just work out what the dilution factor is and multiplying through like below
adj high = ((adj close)/close)*high
adj low = ((adj close)/close)*low
adj vol = ((adj close)/close)*vol
Then just use these adjusted prices in the indicators?
I hope this makes sense to someone!