Double Exponential Moving Average (DEMA)
A fast-acting moving average that reduces lag by using two exponential moving averages.
Usage
Use as a replacement for EMA when faster signal generation is required without excessive noise. DEMA reacts more quickly to price changes than a standard EMA.
Background
Developed by Patrick Mulloy in 1994, DEMA provides a less-laggy alternative to traditional moving averages. It is calculated by taking a single EMA and then subtracting it from a double EMA of the same period. This effectively cancels out some of the lag inherent in the EMA calculation. — StockCharts ChartSchool
Parameters
timeperiod(default: 30): Smoothing period
Formula
\[
DEMA = 2 \times EMA - EMA(EMA)
\]