Wednesday, September 13, 2006
Technical Indicators
Moving Average, Displaced
Read More...PThe Displaced Moving Average takes the current moving average and shifts it forward (or backward) in time. Use to de-trend the data, for cycle estimation, for phasing or as a simple moving average trading system.
While the first number in the study specifies the period of a simple moving average (e.g., 28 days), the second parameter specifies the shift period (e.g., 5 days); enter a negative number to shift the moving average back (e.g., -14 days). When the moving average is shifted back, the remaining portion of the study is computed with the moving average based on the available data for each day (e.g., 13 days, 12 days, etc.)
The mathematics of a moving average will always force it to follow or lag the actual price data. By centering the moving average, you will have a more accurate picture of the moving average relative to the current price on the chart. A Displaced Moving Average study could be quite useful in locating and estimating cycles...
While the first number in the study specifies the period of a simple moving average (e.g., 28 days), the second parameter specifies the shift period (e.g., 5 days); enter a negative number to shift the moving average back (e.g., -14 days). When the moving average is shifted back, the remaining portion of the study is computed with the moving average based on the available data for each day (e.g., 13 days, 12 days, etc.)
The mathematics of a moving average will always force it to follow or lag the actual price data. By centering the moving average, you will have a more accurate picture of the moving average relative to the current price on the chart. A Displaced Moving Average study could be quite useful in locating and estimating cycles...
