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Chapter 11, Part V. Using Moving Averages. Displaced MA. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jun 21, 2011.

  1. Administrator

    Administrator Just Administrator :-)

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    Please use this thread for questions, answers, and comments on this lesson.
     
  2. Benjamin Lam

    Benjamin Lam Recruit

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    Displaced MA

    Hi Commander,
    Read the lesson on Displaced MA but confused. On the MT4 platform under Indicators-Moving Average, we can only find SIMPLE_EXPONENTIAL_SMOOTHED n LINEAR WEIGHTED but cant find DISPLACED MA.
    Also whai is the meaning of "Yes, both MA are 7-period MA, but red one was displaced forward for 5 periods:"? Does this DISPLACEMENT mean filling in the "SHIFT" box of the MOVING AVERAGE box?
    "- If you want to shift (displace) MA forward – you should enter positive number. In our example we’ve shifted
    7-period SMA for 5 period forward;
    - If you want to shift (displace) MA backward – you should enter negative number."
    does this mean, say, positive # is 5 n negative # is minus 5?
    Tks.
     
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Yes, on both questions.
    You have to fill "Shift" field in MT4 MA, and what type to use - simple, exp, or smoothed - this is quite different parameter. In our examples we use simple displaced MA.
    So, if you want in MT4 build 7x5 DMA, you need choose 7-period, shift =5, type - simple.
     
  4. jmcl

    jmcl Private

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    Lots to study

    Hi Commander

    Thanks for ALL this valuable information.

    Just interest to know what platform are you using in the examples?

    My concentration is more focused now after studying the insets here.

    Regards

    John from Durban
     
  5. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Jonh,
    this is CQG trading platform. It rather expensive, so it make sense to use it, if your rather successful trader and your assets somewhere 100K+
    This is one from "Big three" - Bloombers, Reuters and CQG. But among all of them - only CQG has full DiNapoli indicators pack
     
  6. Amon Mitch

    Amon Mitch Recruit

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    Dear Sir,

    Doesn't the use of Smoothed MA (MT4 Platform) do a better job of reducing the whipsaws?

    I mean a comparison between 7x5 SMA and 7x0 SMMA (Smoothed Moving Average)

    Thank you
     
  7. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Amon,
    let me know this :)

    Using smooth MA, exponential or simple without displacing, still will be significantly different from displaced one.
    But, it's very personal. Still, SMMA will be closer to SMA than to DMA. From that point of view, it hardly will be better than DMA.
     
  8. jmcl

    jmcl Private

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    Thanks Sive

    I am not there yet, but learning hard

    John from Durban
     
  9. FOREXHAWK

    FOREXHAWK Private

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    hi Sive

    I have just aquired Metatrader 4 and revisited your lesson on DMA's having placed a 7sma and 7x5sma. The end of both averages give the same reading on the EUr/US chat for 1day. I can clearly see that your example shows the displaced SMA being slkightly higher th the SMA. the readings are 1.37112 on the displaced and normal SMA this is trending down with cadles retracing back from a swing low at 1.35008

    Could you please advise me why this has occured am I doing something wrong
     
  10. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Hawk.
    It's a bit dufficult to understand only by speaking about it. COuld you please attach the chart and parameters of MA's that you've plotted.
    DMA and SMA should have the same last number, since DMA is just horizon parallel shifting of SMA for some period forward or backward.
     

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