7 replies to this topic

[saltlake]

I noticed a big thread the other day on the 3 period Ema displaced moving average. This makes no sense to me to be putting a displaced moving average on your chart. Im not seeing any predictive value in it. Im sure I am just not looking at it right. Can anyone explain the value of the this? Hiker? To me it just looks like an illusion

[Rogerdodger]

A moving average that has been adjusted forward or back in time in order to forecast trends. Displaced moving averages are constructed by taking the moving average and shifting it by a number of intervals, either positive or negative. If the number is negative, the displaced moving average will lag the original moving average, and if the number is positive the displaced moving average will lead the original moving average.

Investopedia Says... The aim behind displaced moving averages is to allow traders to center the moving average or make the displaced moving average fit better with the price movement, thereby removing some of the noise in the moving average. Some traders believe that displaced moving averages have more predictive power than basic moving averages such as simple and exponential.
LINK
From Stockcharts:
Displaced Moving Averages - Add an optional second parameter to SMAs and EMAs that will displace them by that many periods. Here's an example:

Edited by Rogerdodger, 20 April 2007 - 05:48 PM.

[selecto]

I don't think this is particularly by-the-book, but it is a little doodle I did to show me
what I might reasonably expect after a close above the 3-3.

[Mr Dev]

I don't think this is particularly by-the-book, but it is a little doodle I did to show me
what I might reasonably expect after a close above the 3-3.

I like it,....not the leading Ma,... but your work.

[selecto]

Thanks. Yea, its sort of like Spike Jones' "Fastest Man In Siam." You can get there long before you start.

[mss]

Here is a slightly different version of off-set ma. Notice the relationship of the three moving averages to the movement of price.
There are six TA tools on this chart and all six have a story to tell.
We have StochRsi, moving averages, a triangle, a set of ratios, and volume with accum/dist trend. My comment when posted below (What sound?), a lot of leaning be careful. Remember I don't day trade.



mss

[mini-trader]

I don't think this is particularly by-the-book, but it is a little doodle I did to show me
what I might reasonably expect after a close above the 3-3.

How do you know where the (3,-3)ema will be in three days???

Look at where the (3,-3) ema was on march 14th. Now look at the price high and close on march 19th. It was way above the the ema at that point. Using this chart you would short then. If you have to wait three days to confirm them then 8 of those 11 trades are losers.

Edited by mini-trader, 21 April 2007 - 09:56 AM.

[saltlake]

mini, Thats exactly my point. Thanks you for posting