Double Exponential Moving Average - DEMA

DEFINITION of 'Double Exponential Moving Average - DEMA '

A technical indicator developed by Patrick Mulloy that first appeared in the February, 1994 Technical Analysis of Stocks & Commodities. The DEMA is a calculation based on both a single exponential moving average (EMA) and a double EMA.

BREAKING DOWN 'Double Exponential Moving Average - DEMA '

The DEMA is a fast-acting moving average that is more responsive to market changes than a traditional moving average. It was developed in an attempt to create a calculation that eliminated some of the lag associated with traditional moving averages. The DEMA can be used as a stand-alone indicator and can be incorporated into other technical analysis tools whose logic are based on moving averages.

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RELATED FAQS
  1. What are the main drawbacks of a Double Exponential Moving Average -DEMA?

    Learn more about the double exponential moving average indicator and how it differs from other moving averages and its major ... Read Answer >>
  2. How are double exponential moving averages applied in technical analysis?

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  3. What is the Double Exponential Moving Average (DEMA) formula and how is it calculated?

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