White Paper

Analysis of Erlanger Data Series:

Displaced Moving Averages

By: Philip B. Erlanger, CMT

I. Introduction

II. Definitions

III. Applying DMA's to Erlanger 2000 charts

The following steps will highlight the procedures for applying the DMA averages to an Erlanger 2000 chart:

Create or load a simple price chart.

Then right click your mouse to bring up the chart dialog box - select studies, then "Moving Average":

The Moving Average dialog box has settings for length of moving average (enter 6), offset (enter 4 to move to the right 4 bars), and source (select High). Change the color to bright green, and click "OK" to plot the DMA on your chart:

For the second DMA, again bring up the Moving Average dialog box and set length of moving average (enter 6), offset (enter 4 to move to the right 4 bars), source (select Low). Change the color to bright red, and click "OK" to plot the DMA on your chart:

Your chart should look something like this:

IV. Applying DMA to the Erlanger Trading Rank

V. Conclusion

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