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Technical Analysis, Studies, Indicators:
Displaced MA (Moving Average)


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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)
 
Displaced MA Chart


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11/21/2008 - SV3