The Double Exponential Moving Average (DEMA) is a combination of a single exponential moving average and a double exponential moving average. The advantage is that gives a reduced amount of lag time than either of the two separate moving averages alone.
The DEMA can be applied in the same manner as the Simple Moving Average or Exponential Moving Average. When price crosses the moving average and increases, a continuing uptrend can be expected.
This indicator is developed by Patrick G.Mulloy and intorduced in January,1994 issue of the “Technical Analysis of Stocks & Commodities” magazine.
Calculation:
EMA = Exponential Moving Average
Inputs:
Period = 12
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Price Field = Close
Indicates Open, High, Low or Closing price.
Indicator Type: Trend