Double Exponential Moving Average (DEMA) is one of forex technical indicator used in forex technical analysis by many traders. Double Exponential Moving Average (DEMA) consists of a single exponential moving average and a double exponential moving average. Its main preference is that it provides a diminished amount of delays than if the two moving averages had been used apart.

DEMA was designed to lessen the lag of a regular exponential moving average. It is a composite of a single exponential MA and a double exponential MA that produces less lag than its two components individually; it is NOT a moving average of a moving average.

When price crosses the moving average and increases, a continuing uptrend can be predicted. So as far as you see, it’s possible to use the Double Exponential Moving Average in the same way as the Simple Moving Average or Exponential Moving Average.