DEFINITION of 'Displaced Moving Average'
A moving average that has been adjusted forward or back in time in order to forecast trends. Displaced moving averages are constructed by taking the moving average and shifting it by a number of intervals, either positive or negative. If the number is negative, the displaced moving average will lag the original moving average, and if the number is positive the displaced moving average will lead the original moving average.
BREAKING DOWN 'Displaced Moving Average'
The aim behind displaced moving averages is to allow traders to center the moving average or make the displaced moving average fit better with the price movement, thereby removing some of the noise in the moving average. Some traders believe that displaced moving averages have more predictive power than basic moving averages such as simple and exponential.

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What are the most common periods used in creating Moving Average (MA) lines?
Learn the most commonly selected periods used by traders and market analysts in creating moving averages to overlay as technical ... Read Answer >> 
What are the main advantages of using Moving Averages (MA)?
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What are the main disadvantages of using Moving Averages (MA)?
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Why is the Moving Average (MA) important for traders and analysts?
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What is a common strategy traders implement when using the Moving Average (MA)?
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How are moving averages used in trading?
Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages ... Read Answer >>