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Forums    February 9, 2012
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Displaced Moving Average (DMA)
Last Post 12-04-2008 05:02 PM by mur ang. 1 Replies.
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James Kuah
New Member
New Member
Posts:4

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12-04-2008 04:50 PM

    Hi,

    I am a newbie to tradersstudio and am looking to create own systems at this point of time. I would appreciate it if anyone could me in terms of coding on how to create a Displaced Moving Average which one of the many moving averages that are missing in tradersstudio.

     

    Thanks and Regards,

    James

    mur ang
    Advanced Member
    Advanced Member
    Posts:525

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    12-04-2008 05:02 PM

    Simple Average(Close,10,1) would give you the moving average 1 bar ago on the curent bar. Average(Close,10,2)  would on the current bar give you the moving average two bars ago.

    The great advantage of this is that you will know what average you are using in advance. If you are using a 3 period moving average displaced one bar back then you will know the moving average you will be using tomorrow before tomorrow comes.

    In the chart below there are two moving averages. The black line is a typical 20 period moving average. The green line is a 20 period moving average displaced 5 times into the future.

    You can see that in this up trend there are fewer closes below the green line thus keeping you in the trade longer. With less whipsaw you don't get kicked out of the trade as often.

     

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