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?

    Learn more about double exponential moving averages (DEMAS), and find out how traders commonly use DEMAs in technical analysis ... Read Answer >>
  3. What is the Double Exponential Moving Average (DEMA) formula and how is it calculated?

    Discover the equation for double exponential moving average, or DEMA, and learn how it is calculated for a better understanding ... Read Answer >>
  4. What are the differences between an Exponential Moving Average (EMA) and a Double ...

    Use exponential moving average, or EMA, or double exponential moving average, or DEMA, to spot trends more easily. Compare ... Read Answer >>
  5. What are common trading strategies used with the Double Exponential Moving Average ...

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