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SharpCharts users can offset a moving average by adding positive or negative inputs to the indicator parameters. First, start with a SharpChart and a simple moving average. Second, go to the indicator section and to the parameters box. Add a comma and then the number of days for the offset (-11 to offset left and 11 to offset right). A left offset places the moving average further in the past. A right offset places the moving average into the future. This does not, however, increase predictive power. Don’t forget to add extra bars to the chart so you can see a positive offset.
The chart below shows the Nasdaq 100 ETF (QQQQ) with a three versions of the 20-day simple moving average. The normal SMA is blue, the 10-day negative offset is red and the 10-day positive offset is green. These three have the same shapes because they are the same exact moving averages. The only different is the horizontal shift (offset). A negative offset can be used to center a moving average. A negative 10 day offset for a 20-day moving average places the moving average in the middle of the 20 days used in the calculation. Not the “exact” middle, but pretty close. Even though this centered moving average follows prices closer than the normal moving average, it still has lag.
