Hi!!

what is offset in moving averages?

Thanks

Hi milan2563,

Glad to hear from you and welcome to the community.

The offset in a moving average is used to shift the moving average to the left or right once by a set number of periods. To be honest that is about all I know about it I think it is potentially used to create moving average "bands" but I am not positive about that.

Does anyone else have any input on this one?

Best Regards,
Dave

__________________
Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

Investopedia sums it up best:
Displaced Moving Average

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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.

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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Offset is a synonym for "displacement" and also "shift".

The most famous use of dislpacement in moving averages is from Bill Williams' Alligator system. The Alligator attempts to capture large, sustained trends through a combination of displacement and triple moving averages. Theoretically, the combination of multiple averages displaced by varying degrees reduces the number of whipsaws.

__________________
Shaun Overton
OneStepRemoved.com
Strategy and Automated Trading Development

much appreciated Shaun.

Best Regards,
Dave

__________________
Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.