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Forex Indicator DEMA

Developed by Patrick Mulloy and introduced in the February 1994 issue of Technical Analysis of Stocks & Commodities magazine, this trend indicator is an acronym standing for "Double Exponential Moving Average". DEMA was designed to lessen the lag of a regular exponential moving average. It is a composite of a single exponential MA and a double exponential MA that produces less lag than its two components individually; it is NOT a moving average of a moving average.

Interpretation

The DEMA can be used in place of traditional moving averages. 

 

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. 

 

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