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Vignesh, a displaced moving average is a moving average that has been moved
or "displaced" away from its natural position. Pring and DiNapoli among
others talk about them and DiNapoli is quite high on them. In their case
the moving average is "displaced" forward by and amount. So, if you have a
7 bar moving average displaced 5 bars, it is a 7 bar MA where the most
recent bar used in the average is from 5 bars ago. The logic is that you
will get fewer whipsaws if the average is moved forward. From what I have
seen, this is true many times. You can use the Horizontal shift option to
accomplish this in the MS Indicators.
Tom
----- Original Message -----
From: "Vignesh" <vignesh@xxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, November 24, 2000 2:40 AM
Subject: Re: displaced moving average formula
> hello list,
>
> It is probably something very basic, but I haven't been able to figure out
> what "displacing moving average" is all about. Martin Pring's Book on TA
> does not explain it in any detail. What is the logic and interpretation of
> displacing a MA? A related question I guess would be, what do the
> Vertical/Horizontal shift options on MS mean?
>
> all responses appreciated,
>
> vignesh
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