• The Double Exponential Moving Average (DEMA) is a type of technical indicator used to identify a potential uptrend or downtrend in the price of a stock or other asset.

  • A moving average tracks the average price of an asset over a period to determine the point at which it establishes a new trend by moving above or below its average price.
  • Some traders see the disadvantage of the standard moving average: it has a lag that increases with the length of the displayed period.
  • DEMA eliminates this disadvantage by reducing the delay time in the indicator.
  • Thus, DEMA has a stronger filter for “noise” of irrelevant market actions that can distort the results obtained on the chart.