Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Which stocks will surge next?
Unlock AI-picked Stocks
Update Your Indicators with Displaced Moving Averages
Tuesday, August 6, 2019
Expert: Barry Norman Hosted by: UBCFX- Forex
- Cryptocurrency
- Technical Analysis
- Candlestick Patterns
- Price Action
- Intermediate
There are many types of moving averages ranging from simple (SMA) moving averages to exponential moving averages (EMA) to more complicated WVMA, volume weighted moving average but there is none as exciting and new as Displaced Moving Averages (DMA). Through the use of new complex computerized charting we now have a new trading resource. A displaced moving average (DMA) is a moving average (MA) that has been adjusted forward or back in time in an attempt to better forecast trends or better fit the price movements of an asset.
Displacing a moving average is a practice used by traders to more accurately match the moving average with the price action. Furthermore, we all have experienced situations, where the price walks the trend line (as a support or resistance), but there are times where price will close slightly beyond the average.
Displacing a moving average involves shifting it to the left or right by a certain number of days. To displace a 10-day moving average by plus three days, you move the line representing the moving average to the right on the price graph by three days. A technical analyst uses displacement if, historically, the moving average has triggered buy or sell signals too early or too late. By visualizing where those same signals would have been generated if the analyst had used a displaced moving average, the accuracy of the analysis can be greatly enhanced.
Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.
Displacing a moving average is a practice used by traders to more accurately match the moving average with the price action. Furthermore, we all have experienced situations, where the price walks the trend line (as a support or resistance), but there are times where price will close slightly beyond the average.
Displacing a moving average involves shifting it to the left or right by a certain number of days. To displace a 10-day moving average by plus three days, you move the line representing the moving average to the right on the price graph by three days. A technical analyst uses displacement if, historically, the moving average has triggered buy or sell signals too early or too late. By visualizing where those same signals would have been generated if the analyst had used a displaced moving average, the accuracy of the analysis can be greatly enhanced.
Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.