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Gaius Marius wrote:
>
> :> Displaced Moving Averages are a great trading tool, ask a trader
> :> who uses them.
> :
> :Ok, I'm always interested in learning something new so I'm asking? What
> :are they good for?
>
> I used them as a trailing stop.
>
> Inputs: AvgLen(10),Dsp(3);
> Vars: Ma(0);
>
> Ma=Xaverage(Close,AvgLen)[dsp]
> Exitlong Ma Stop;
> Exitshort Ma Stop;
Do you guys remember J.M. Hurst's book written many years ago? He
called the displace MAs, 'centered' moving averages. He also drew bands
around this 'displaced' averages. Hurst believed that this is the
correct way of applying moving averages and the traditional uses of MAs
are dead wrong.
The question to Gaius and other users of displaced MA is this:
When you plot the MA certain periods back, how do you account for the
present? Do you use an extrapolation technique?
This has been the ultimate question for me as far as displaced MAs are
concenred.
Rgrds
RZ
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