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Double exponential shift movement average ( the DEMA ) Double exponential shift moving average ( DEMA ) reduces the traditional EMA lag time, to make it more sensitive, more suitable for short-term traders. DEMA of Patrick Mulloy open hair, and in 1994 Nian 1 month's "technology stocks and commodities introduced cytometry analysis" magazine. Use superposed single smooth EMA and double smoothing EMA of delay to offset a difference between a smooth single EMA . The moving average produced by this shift remains smooth, but it is closer to the price bar than the single-smooth or double-smooth traditional EMA . Calculation Single smoothing and double smoothing EMA : EMA1 = price EMA EMA2 = EMA1 of EMA DEMA = ( 2 x EMA1 ) -EMA2 From this very nature, the formula using the single smoothing slight delay EMA1 and even more double hysteresis smoothing EMA2 the delay difference between, and from the EMA1 subtracting the difference. The smooth line produced by this calculation is closer to the price line than EMA1 or EMA2 . Solution release DEMA solution of Buddhism and traditional EMA similar, but the response should be faster. Like other EMA a sample, which can be used to confirm the trend or tendency of changes found. The most common signal is DEMA divided frequency divider. Pay attention DEMA line over the price bars, or short-term observation DEMA more over the long-term DEMA , to indicate a change in trend. For example, over 50 days DEMA of 20 is days DEMA will look up the signal. These DEMA Cross (no theory of price or other DEMA ) is usually higher than with the corresponding traditional EMA crossover happened much earlier. In the example below, the green arrow marks the DEMA intersection and the blue arrow marks the corresponding EMA intersection. In both cases, the DEMA crossover occurs before the EMA crossover. Keep in mind that due to the DEMA counter should be higher than the traditional EMA faster, and therefore may need to adjust your trading strategies for DEMA . in conclusion And traditional EMA comparison, DEMA usually the current price cross and other signals. DEMA reduced hysteresis and more strong response should be a short-term ability to attract investors, but long-term investors may find the traditional moving average is more useful. As with all technical indicators, traders should DEMA and the other refers to the use of standard and analysis technologies.
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