Indicator Description

DEMA (Double Exponential Moving Average) is an improved moving average that increases responsiveness to price changes by reducing lag.

Calculation Principle

DEMA is calculated using the following formula:

DEMA = 2 * EMA(price) - EMA(EMA(price))

Where:

• EMA(price) is the first exponential moving average of price
• EMA(EMA(price)) is the double exponential moving average of price

Usage Scenarios

1. Trend identification
2. Support and resistance level judgment
3. Price breakout confirmation
4. Trading signal generation