Quick Summary
DEMA first introduce Patrick G. in 1994. Mullo was presented in the article “Smoothing Data with Faster Moving Avenues” in “Technical Analysis of Stock and Commodities” magazine. Double Exponential Moving Average (DEMA) is a smooth and fast moving average that has been developed with the aim of reducing the interval time found in the traditional moving average.
How to trade with DEMA
DEMA can be used instead of a traditional moving average. Or the formula can be applied to facilitate value data for other indicators, which are based on moving average. DEMA can rapidly change prices compared to regular EMAs.
Such popular trading methods, such as Moving Average Crossover, will get a new meaning with DEMA.