DEMA

DEMA is a unique smoothing indicator developed by Patrick Mulloy. It was originally introduced in the January 1994 issue of Stocks & Commodities magazine.

As Mr. Mulloy explains in the article:
"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 is an acronym that stands for Double Exponential Moving Average. However, the name of this smoothing technique is a bit misleading in that it is not simply a moving average of a moving average. It is a unique composite of a single exponential moving average and a double exponential moving average that provides less lag than either of the two components individually.

Syntax:

DEMA
DEMA()
DEMA(“Period”)
DEMA(“OutPutStartCell”,”Period”)

Inputs:

'Close' column values

Parameters:

• Period (default=26)
• OutPutStartCell (default=the next blank column in the worksheet)

Examples:

DEMA
DEMA()
DEMA(“26”)
DEMA(26)
DEMA(“G2”,”26”)
DEMA(“G2”, 26)
DEMA(G2,”26”)
DEMA(G2, 26)