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Displaced Moving Average


The Displaced Moving Average is use for phasing, for re-directing the data, for cycle estimation or just as a moving average trading system. It takes the ongoing moving average and moves it backward (or forward) in time.

The first number in the study defines the period of a simple moving average - for example, 28 days - the second parameter specifies the shift period - for example, 5 days. Enter a negative number to shift the moving average back - for example, 14 days. If the moving average is moved back, the rest part of the study is calculated with the moving average based on the available data for every day - for example, 13 days, 12 days, etc.

Displaced Moving Average system can turn out to be rather helpful in valuing and placing of the cycles.

The moving average mathematics system will always make it trail or drop behind the current price data. You will have a more precise description of the moving average corresponding to the actual price on the chart if you put the moving average in its center.