Hey fellow traders! Today, let’s dive into a powerful tool that can enhance your trading strategy: the Double Exponential Moving Average, or DEMA for short. This nifty indicator was developed by Patrick Mulloy back in 1994, with a mission to tackle one of the biggest drawbacks of traditional moving averages—the lag.
So, what makes DEMA stand out? Unlike the Simple Moving Average (SMA), which can leave you waiting for price action to catch up, DEMA combines both single and double smoothed exponential moving averages. This means it provides a quicker reaction to price changes, making it a valuable ally in your trading toolkit.
Input Parameters:
extern int PERIOD = 12;
DEMA is particularly useful if you’re looking to minimize lag and get ahead of the curve. If you’re using it in your trading strategy, you’ll likely find that it can help you spot trends earlier than other moving averages.
DEMA Indicator
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