Originally posted by billyjoe
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Displaced Moving Average Definition
The displaced moving average (DMA) is created by shifting the moving averages forward or backwards in time by a specific time interval. The displaced moving average is used for two primary reasons:
Shift the moving average backwards to contain the trend bettter, in order to stay in long-term positions
Shift moving average forward in order to become a leading indicator, to get out of positions once counter rallies develop.
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