Double Exponential Moving Average - DEMA

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Simple Moving Average - SMA

    A simple, or arithmetic, moving average that is calculated by ...
  3. Technical Indicator

    Any class of metrics whose value is derived from generic price ...
  4. Exponential Moving Average - EMA

    A type of moving average that is similar to a simple moving average, ...
  5. Linearly Weighted Moving Average

    A type of moving average that assigns a higher weighting to recent ...
  6. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
Related Articles
  1. Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  2. Technical Indicators

    Simple Moving Averages And Volume Rate-of-Change

    We teach you how to confirm buy and sell signals by comparing two very simple indicators.
  3. Trading Strategies

    Double Exponential Moving Averages Explained

    This tweak on moving averages gives traders faster access to the information they need.
  4. Active Trading Fundamentals

    Weighted Moving Averages: The Basics

    We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average.
  5. Forex Education

    Premier Stochastic Oscillator Explained

    This oscillator has been used since the 1950s by traders and investors to anticipate areas where the market may change direction.
  6. Active Trading

    The Basics Of Bollinger Bands®

    This strategy has become one of the most useful tools for spotlighting extreme short-term price moves.
  7. Forex Education

    Moving Average Envelopes: Refining A Popular Trading Tool

    Traders can benefit from experimenting with envelopes, which help spot trends after they develop.
  8. Active Trading Fundamentals

    Minute-to-Minute Trade Signals for Today's Scalper

    Scalpers profit in the modern electronic environment by utilizing technical indicators that are custom-tuned to very small time frames.
  9. Chart Advisor

    These 4 Stocks are Hitting Technical Headwinds

    These up trending stocks are showing signs of weakness, indicating it may be time to sell.
  10. Forex Strategies

    How do I implement a forex strategy when spotting a Three White Soldiers Pattern?

    Learn two variations, one aggressive, one more conservative, of a forex trading strategy that can be used with the three white soldiers candlestick pattern.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center