Double Exponential Moving Average (DEMA)



DEMA Indicators Forex

Downloads


Forex MT4 indicator DEMADEMA.mq4
Forex MT4 indicator DEMADEMA_RLH.mq4

DEMA - quick summary


Double Exponential Moving Average (DEMA) is a smoother and faster Moving average developed with the purpose of reducing the lag time found in traditional moving averages.

DEMA was first time introduced in 1994, in the article "Smoothing Data with Faster Moving Averages" by Patrick G. Mulloy in "Technical Analysis of Stocks & Commodities" magazine.

In this article Mulloy says:
"Moving averages have a detrimental lag time that increases as the moving average length increases. The solution is a modified version of exponential smoothing with less lag time.."


DEMA indicator formula


Dema indicator formula

DEMA default period (t) = 21.

DEMA is not just a double EMA.
DEMA is also not a moving average of a moving average.

It's a combination of a single + double EMA for a lesser lag than either of the original two.

How to trade with DEMA


DEMA can be used instead of traditional moving averages or the formula can be applied to smooth out price data for other indicators, which are based on moving averages.

DEMA can help to spot price reversals faster, comparing to regular EMA.
Such popular trading method as Moving average crossover, will gain a new meaning with DEMA.

Let's compare 2 EMA crossover vs 2 DEMA crossover signals.


DEMA MACD for MT4


Some of Mulloy's original testing of DEMA indicator was done on the MACD, where he discovered that the DEMA-smoothed MACD was faster to respond, and despite producing fewer signals, gave higher results than the regular MACD.

Forex MT4 indicator DEMADEMA_MACD.mq4
Forex MT4 indicator DEMAMACD_3_DEMA.mq4
Forex MT4 indicator DEMAMACD_3_DEMA_v101.mq4

Besides MACD, DEMA smoothing method can be applied to various indicators.

Patrick G. Mulloy says:
"..Implementing this faster version of the EMA in indicators such as the moving average convergence/divergence (MACD), Bollinger bands or TRIX can provide different buy/sell signals that are ahead (that is, lead) and respond faster than those provided by the single EMA.."

Forex MT4 indicator DEMADEMA RSI indicator: DEMA_RSI_LK_V1.3.mq4

Another smoothing method developed by Mulloy is known as TEMA, which is a Triple Exponential Moving Average or, yet another Triple EMA version, developed by Jack Hutson - TRIX indicator.

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Comments

Hi, I like to make EA (Expert Advisor) using DEMA. The DEMA formula I made below looks like incorrect, because I test it and it losing money. Could you please tell me the correct one. My name is Jeffrey and my email is jyoungaus(at)yahoo.com.au . Thank you.

double ema1 = iMA(NULL,PERIOD_H1,14,0,MODE_EMA,PRICE_CLOSE,0);
double ema1a = iMA(NULL,PERIOD_H1,14,0,MODE_EMA,ema1,0);
double ema2 = iMA(NULL,PERIOD_H1,28,0,MODE_EMA,PRICE_CLOSE,0);
double ema2a = iMA(NULL,PERIOD_H1,28,0,MODE_EMA,ema2,0);
double dema1 = (ema1 * 2) - ema1a;
double dema2 = (ema2 * 2) - ema2a;
if(dema1 > dema2){buy;}
if(dema1 < dema2){sell;}

 

Hi, I am unable to see the macd charts of dema. Whenever I open it shows olny blank indicator windows. I have tried all the options that I can try only as a basic user of MT4 as I am not good in coding.

Can you please help me solve this problem? what is the problem that it shows only blank indicator windows of this dema MACD only. other indicators are working and showing fine.

 

go to input change false instead true

 

Whats the process for installing DEMA in MT4? Av tried coping the download but it didnt work. U are doing a great job. Your presentation is jargonless. olatunde. email:olatunde_adigun2000@yahoo.com

 

This might help... may be
http://forex-indicators.net/faq

 

If you use Odin software then i have correct method for buy and sell...!!!!

 

start making money by reversing your formula m

 

help...may i know how to set in MT4?

 

I read through some comments and not sure if anyone responded to you? 1. The reason your EA does not work is because you are using DEMA indicators, not EMA. 2. The reason you cannot see the MACD is because it is coded with iCustom and pulls in data from the DEMA indicator. Be sure to add the DEMA indicator to your experts/indicators and then you will see the MACD just fine:)

 

To the host of the site. Thank you very much for the DEMA indicators. It was exactly what I was looking for. AWESOME!!

 

as I am new at downloading code could somebody be kind enough to help me I know the part C/Prograam files but its the part from downloading of code at the outset

 

Hi, my name is Daniel. Am a complete newbie in forex. I would like someone to please help explain how to use the metatrader indicators, MACD especially, how to use the EA and how to set it up to me. I would really appreciate it if anyone out there can help me. My email is minbeykdaniel17@yahoo.com

 

Dear Admin,

Thank you for this great site. I am interested in MACD_3_DEMA_v101.mq4. Could you please explain this indicator in more details. Thanks, Wo1fx.