Re: DISPLACED MOVING AVERAGES?

[Dennis Holverstott <dennis@xxxxxxxxxx>]

I don't get it. Why would anyone want to use displaced averages? Looking
at snippets of Omega's code:

----------
if Displace >= 0 and currentbar > Displace 
then begin
	AvgValue = Average(Price,Length)[Displace];
	plot1(AvgValue,"AvgDisplace");

This would add a lag to the average. Exactly the opposite of what most
of us want our indicators to do.

If you are using daily data and Displace is 5, you are plotting the
average that happened a week ago. Can't see what good that would do.

-----------
if Displace < 0 and CurrentBar > AbsValue(Displace) 
then begin
	AvgValue = Average(Price,Length);
	plot1[AbsValue(Displace)](AvgValue,"AvgDisplace");

This would give the *appearance* on a historical chart of removing the
lag from the average. The turns of the average would *appear* to predict
the future. The catch, of course, is that it wouldn't work realtime. 

If you are using daily data and Displace is -5, it means at the end of
today, it plots the value of today's average over the bar that happened
a week ago. No average plots over any bar that happened within the last
week. Seems like a good way to generate some nice looking historical
charts if you are trying to sell indicators but I can't see what good it
would be for trading.

-- 
   Dennis