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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. (see moving averages for details)
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