what is a double exponential moving average dema 
the double exponential moving average dema is a technical indicator devised to reduce the lag in the results produced by a traditional moving average technical traders use it to lessen the amount of noise that can distort the movements on a price chart like any moving average the dema is used to indicate the trend in the price of a stock or other asset by tracking its price over time the trader can spot an uptrend when the price moves above its average or a downtrend when the price moves below its average when the price crosses the average it may signal a sustained change in the trend as its name implies the dema uses two exponential moving averages emas to eliminate lag in the charts this variation on the moving average was introduced by patrick mulloy in a 1994 article smoothing data with faster moving averages in technical analysis of stocks commodities magazine 1the formula for the double exponential moving average is d e m a 2 e m a n e m a of e m a n where begin aligned dema 2 times ema n ema text of ema n textbf where n text look back period end aligned dema 2 eman ema of eman where 