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Technical Analysis, Studies, Indicators: Displaced MA
(Moving Average)
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Studies
The Displaced MA (Moving Average) takes the current moving
average and shifts it forward or backward in time by specified number of bars.
The first number in the study defines the period of a simple moving average
(number of bars), the second parameter specifies the displaced period (number of
bars to shift back or forward).
By
entering a negative number you will shift the moving average left (back in
time). When the moving average is shifted back, the remaining portion of the
study is calculated with the moving average based on the available data.
The mathematics principles of a moving average will always make it to follow or
lag the actual price data. By centering the moving average, you may receive more
accurate picture of the MA in relation to the price. A Displaced MA could be
quite useful in locating and estimating cycles.
Chart 1: Displaced MA (Moving Average)

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