Concept
Displaced MA
Displaced MA is a Trend concept. The Library holds 3 implementations, each one a working definition you can pull into Quant.
DMA
Top Displaced MA indicators
3 total
What is a Displaced MA?
A displaced moving average is an ordinary moving average shifted horizontally by a fixed number of bars. The calculation is untouched; only the plot moves. Positive displacement pushes the line rightward, so today's price is compared against an average computed several bars ago; negative displacement centers the line over the data it summarizes. Joe DiNapoli popularized forward-displaced simple averages (his 3x3, 7x5 and 25x5 lines) as trend and pullback references, a form of dynamic S/R.
Displacement changes timing, not information. Pushing the line forward delays crossovers, trading whipsaws for lateness, and plotting a series backward is the same trick in reverse: the Ichimoku system displaces price itself 26 bars back as its lagging span. What displacement cannot do is reduce lag. The value under today's bar was computed from older data, and centered lines near the right edge cannot be known in real time.
How traders use it
- As DiNapoli-style dynamic support and resistance: in a trending market, pullbacks toward a forward-displaced average are watched as continuation entries, and a close through it is an early warning that the leg is maturing, not proof of reversal.
- To damp whipsaws in crossover logic: displacing the slower line forward makes price and MA crossovers fire later and less often; whether the lateness costs more than the skipped whipsaws save is an empirical question per market.
- For centered smoothing in research: back-displacing aligns the average with the prices it summarizes, useful for offline cycle and detrending work, with the caveat that the most recent half-window has no final value yet.
Displaced MA vs look-alikes
DEMA: The shared initials invite confusion, but DEMA is a different formula: a double-EMA combination designed to reduce lag inside the calculation. A displaced MA is any ordinary average with its plot slid sideways; the underlying values never change.
ZLEMA: Zero-lag averages modify the input, adding a momentum correction term to offset lag in the math. Displacement leaves the math alone and just moves the drawing, so it cannot make an average track price sooner.
Anchored MA: An anchored MA changes the window itself, expanding from a fixed starting event. A displaced MA keeps its rolling window and merely repositions where the result is drawn on the time axis.
Related concepts · MA applications
Concept family
Trend
100 concepts mapped · 88 in the Library
Displaced MA FAQ
Does displacing a moving average forward reduce its lag?
No. Forward displacement compares current price with an older average value, which filters some whipsaws precisely because it reacts later. Only formula changes (zero-lag corrections, shorter or front-weighted windows) alter responsiveness. Back-displacement can make the line sit on time over its data, but those centered values are unknowable at the right edge until future bars print.
What are the DiNapoli displaced moving average settings?
Three simple moving averages displaced forward: a 3-period displaced 3 bars (the 3x3), a 7-period displaced 5 (7x5), and a 25-period displaced 5 (25x5). DiNapoli used the 3x3 to track the short-term thrust and the larger pairs for trend context. They are references within his broader method, not standalone signals.
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