eTrader Zone       

This page contains the formula for DEMA and you can download the formula in Excel spreadsheet.

Double Exponential moving Average (DEMA)

DEMA is a smoothing indicator developed by Patrick Mulloy, and it was introduced in February 1994. As Patrick Mulloy said:

"Moving averages have a detreimental lag time that increases as the moving average length increases. The solution is a modified version of exponential smoothing with less lag time."

The Double Exponential moving Average (DEMA) is a combination of a single exponential moving average and a double moving average.

The advantage is that it will gives a reduced amount of lag time than either of the two separate moving averages alone.

DEMA can be used with other moving averages like smoothing price data or other indicators.

Login or Register to download this Excel Spreadsheet