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Double Exponential Moving Average (DEMA) Indicator

DEMA was developed by Patrick Mulloy and published in the January 1994 of Technical Analysis of Stocks and Commodities.  Moving averages are known for their lag time and the DEMA attempts to remedy this.  The calculation consists of a single EMA and a double EMA to smooth out and produce less "head fakes".  According to Mr. Mulloy, a DEMA smoothed MACD produces fewer, but more profitable signals as opposed to the traditional EMA smoothed MACD.

See Also

Double Exponential Moving Average (DEMA) Indicator Developer Help

Exponential Moving Average (EMA) Indicator

Triple Exponential Moving Average (TEMA) Indicator

Moving Average Convergence/Divergence (MACD) Indicator