Double exponential moving average

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The Double Exponential Moving Average (DEMA) indicator was introduced in January 1994 by Patrick G. Mulloy, in an article in the "Stock & Commodity Technical Analysis" magazine: "Streamlining Data with Moving Average Quick "

It tries to remove the inherent lag associated with Moving Averages by placing more weight on the latest values. The name suggests this is achieved by applying a double exponential smoothing that does not occur. The double name stems from the fact that the value of EMA (Exponential Moving Average) is duplicated. To stay in line with the actual data and delete the lag, the " EMA of EMA " value is subtracted from previously duplicated ema.

Rumusnya adalah:

${\ displaystyle {\ textit {DEMA}} = {2 * EMA-EMA (EMA)}}  ÂÂ$

Since EMA (EMA) is used in the calculation, DEMA requires a 2 * period -1 sample to start generating a value different from the period period required by ordinary EMA

The same article also introduces other EMA related indicators: Triple exponential moving average (TEMA)

Video Double exponential moving average

References

Maps Double exponential moving average

External links

Source of the article : Wikipedia