Application displaced moving average DMA

displacement moving average (DMA) in most cases used to move a stop order to exit trading positions . Use of the displaced moving average is completely analogous to the use of the trade indicator Parabolic SAR (PSAR).

What is it like to displaced moving average : DMA (NxM) or displaced moving averages = SMA (N), then there is the usual simple moving average, which shifted to some number of (M) time periods ahead .

Ustanovka displaced moving average-DMA

To install DMA on schedule POS Metatrader 4 , choose Indicator Moving Average, and ask the time value of M in the" shift ".

According to the theory

Joe DiNapoli (Joe DiNapoli), to hold trading positions and measure the trend makes sense to use the following combinations of DMA, as:

3? 3, 7? 5, 25? 5.

The specific choice of the displaced moving average depends on the volatility of the asset sales, as well as the use of scale, as well as the time period.

At least when examined 2 secondary - biased and unbiased 15-day simple moving average for the rising prices of shares of RAO UES. In this example, the DMA curve is shifted slightly to the right parallel shift in the five trading periods.

Primenenie displaced moving averages DMA

Keeping trading position to buy is up to the time that the closing price exceeds the displaced moving average, DMA (15? 5). In case if used for this purpose SMA (15) instead of DMA (15? 5), then this position would be closed much earlier than 5 times. Displaced Moving Average DMA allows us to continue to stay in the trend for a longer time period , closing with a trading position at the time a trend reversal.

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