Double Exponential Moving Average

The Double Exponential Moving Average was developed in an attempt to address the shortcomings of the widely used Exponential Moving Average, including time lag and poor representation of the (filtered) data series.

Double Exponential Moving Average

The Double Exponential Moving Average was developed in an attempt to address the shortcomings of the widely used Simple Moving Average and Exponential Moving Average.  These shortcomings include time lag and poor representation of the (filtered) data series.


Double Exponential Moving Average Formula

A Double Exponential Moving Average (Double EMA) is defined as two times the closing price Exponential Moving Average minus the Exponential Moving Average (same period) of the price EMA.

Formula for calculating Double Exponential Moving Average

Double Exponential Moving Average Interpretation

The Double Exponential Moving Average is more responsive to changes in the security price or market conditions than a traditional moving average would be. The Double Exponential Moving Average may be used as a stand-alone indicator and may also be incorporated into other technical analysis tools.

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