should i use displacement = 1 or 0?

[joemiller]

I have a daily bar chart with an indicator which is calculated on bar close.
is it necessary to displace the indicator one day [.e.] would it not be ok [and
correct] to use a displacement of zero because all calculations have been
made for that day… because the bar has been closed?

[NinjaTrader_PaulH]

Hello joemiller.

Thanks for your post.

The decision to use displacement is yours and it is used to provide a different visualization of the indicator. A displacement of 0 shows the indicator as it is calculated and this is the default value. A displacement of 1 shifts the indicator 1 bar, however, the calculations remain based on the previous bars. Displacement does not change the indicator calculation, only changes how it is displayed.

Alternatives to displacement are to use Calculate.OnEachTick or Calculate.OnPriceChange, either of these modes will show the indicator to the currently forming bar, however, as the bar has not closed it is possible that the indicator value will change as the bar forms.