Rollover & basis
How do Rollover Gaps distort long-term technical moving averages and algorithmic indicator calculations?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Rollover gaps are price jumps between expiring and new contract months that can distort moving averages and other indicators unless charts are properly back-adjusted for continuity.
How it works
Unadjusted gaps can trigger false indicator signals, such as artificial moving-average crossovers, so algorithmic systems typically require back-adjusted or volume-rolled data feeds for accuracy.
An example
A 2-point gap skews a 50-day moving average.
Risk & limitations
Unadjusted data can generate false technical signals.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.