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gorachand  
#1 Posted : Tuesday, October 18, 2016 5:32:11 PM(UTC)
gorachand

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Hello, When plotting a moving average on the Metastock chart-- one can see options for displacing the average horizontally or vertically.I suppose that to view a moving average displaced 5 periods into the future-- i have to select+5 in the option box. But then what does a vertically displaced moving average signify? Can anyone help? Regards, Dr.Chatterjee
mstt  
#2 Posted : Tuesday, October 18, 2016 11:17:20 PM(UTC)
mstt

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Hi Dr Actually the setting for 5 periods into the future would require -5, and +5 delays the MA by 5 periods. So + or - is the reverse of settings you might use for Ref( Mov(C,10,S), Advance or Delay Periods) in an indicator or other formula. As for vertical displacement a Moving Average might be adjusted (up or down) to provide a different level of sensitivity for price crossing over (or under) the displaced MA. The Display options for moving averages can easily be emulated in formulas by using the Ref() function to delay or advance an MA result, and sensitivity is achieved by using a multiplying factor. For example 1.015 increases the MA value by 1.5%. Roy
gorachand  
#3 Posted : Wednesday, October 19, 2016 2:20:08 AM(UTC)
gorachand

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Hello Roy, Thank you for your reply.Could you elaborate and give a few more details about the vertical displacement for moving averages? I couldn' t find a reference in the Metastock manual. Regards, Dr.Chatterjee
mstt  
#4 Posted : Thursday, October 20, 2016 12:13:23 AM(UTC)
mstt

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Hi Dr.Chatterjee There's not really much more I can tell you. Adjusting an MA up or down by any percentage is simply a matter of choice for the user. Whether or not the application of a vertically displaced MA provides an advantage for anyone is up to the individual trader to decide. If you have a mechanical system that can be tested in the EST it would be simple enough to use the OPT (optimization) element to to test different levels of MA displacement. It's up to you to check out the possibility of attaining improved system (test) results - I don't recall ever going down that route but it's certainly an option for the curious. Roy
gorachand  
#5 Posted : Thursday, October 20, 2016 3:55:52 PM(UTC)
gorachand

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Hello Roy, Thank you for your reply. In your last post you had written----"As for vertical displacement a Moving Average might be adjusted (up or down) to provide a different level of sensitivity for price crossing over (or under) the displaced MA."--- This is what I want you to explain.How does moving a m.a. up and down help in technical analysis.I couldn' t find a reference to this on the net. Regards, Dr.Chatterjee
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