The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Moving Averages

This would be more responsive than employing a longer-term trend line,

which would technically also reduce the number of whipsaws. But a longer-term

moving average would lag price significantly and therefore would not prove to be

as profitable a strategy as compared to a shorter-term forward displaced moving

average. See Figure 11.6.

figure  11.5 End-Displaced versus Forward Shifted Moving Averages on the Daily

Chart of the USDJPY.

Source: MetaTrader 4

figure 11.6 End-Displaced versus Longer-Term Moving Averages on the Daily Chart

of the USDJPY.

Source: MetaTrader 4