Closer to price than the ordinary exponential average at turning points.
The short answer
- What is the Double Exponential Moving Average (DEMA)?
- Double exponential moving average: 2×EMA − EMA(EMA) · removes part of the lag.
- When does DEMA get it wrong?
- Less lag means more wobble around peaks. Its current reading on the platform's symbols, at the latest daily close, is in the "Current reading" table on this page. See its current reading →
Reading now
| Ticker | Value | Five sessions ago | Status |
|---|---|---|---|
| SPY | 775.94 | 770.45 | Price is 0.3% above the line |
| QQQ | 752.21 | 749.08 | Price is 1.1% below the line |
| IWM | 276.91 | 279.52 | Price is 0.1% below the line |
| DIA | 512.07 | 510.93 | Price is 0.8% above the line |
A description of where the number sits against its thresholds. It is not an entry or exit signal.
Indicator limit
Less lag means more wobble around peaks.
Read it with
Average True Range: its speed produces more signals, so place the stop at a multiple of ATR rather than directly under the line.
Answers: does the market have a trend?
What it actually does
The Double Exponential Moving Average subtracts part of the lag instead of smoothing it. It computes an exponential average, then an exponential average of that average, and applies the formula (twice the first minus the second). The idea is neat: the gap between an average and its own average estimates the lag, so subtracting it pulls the line closer to price.
What it buys and what it costs
It buys a faster response at turns. That matters, because the lag of averages costs the most at turning points. It pays with more wobble around peaks and troughs: less lag also means a stronger response to noise, so nothing here is free.
When to choose it
In assets with clear trends, where shorter lag means an earlier entry and a real gain. Avoid it in choppy assets, where the extra speed turns into a string of opposing signals.
Hypothetical example
A stock ends a sharp pullback: the 50-day simple average turns six sessions after the low, and the double average turns after three. Three sessions in a big move is a real difference. In a false move it means a faster loss.
Where it errs and why
Less lag is not no lag: it stays late, and it stays helpless in ranges. Its formula can also overshoot price at sharp turns, producing signals that come too early.
Read it with
Don't read it alone. First classify the environment with the trend strength indicator to learn whether trend tools or range tools fit. Then confirm with volume, which separates supported moves from empty ones. Then place it on the structural levels from the gamma map, since a signal at a dense wall carries more weight than one in an empty price zone. This three-step order cuts the worst signals before they cost you anything.
Where to see it on the platform
The technical chart in the members area draws it on any symbol and timeframe you choose, and the scanner terminal shows its reading in the symbol card with the rest of its family.
