In this section you can download DEMA (Double Expotential Moving Average) for Metatrader4:
The file also includes MACD and RSI based on DEMA.
Every trader is familiar with basic moving averages such as:
- Simple Moving Average (SMA)
- Expotential Moving Average (EMA)
- Linear Weighted Moving Average (LWMA)
- Smoothed Moving Average (SMMA)
SMA and EMA are the most popular one. They work nicely in a stock market, but in faster markets (or lower time frames) they tend to lag. That is why traders kept on improving averages and that is why we can use other types of averages. DEMA is one of them.
The double exponential moving average (DEMA) was developed by Patrick Mulloy to reduce the lag time. It was first described in 1994, in the Technical Analysis of Stocks & Commodities magazine in Mulloy’s article “Smoothing Data with Faster Moving Averages”.
DEMA can also be used in indicators which are based on moving averages (MACD, Bollinger Bands, others)
Differences between DEMA and other averages
Let’s take popular pair of 21 and 55 expotential averages:
And pair of 21 and 55 double expotential moving averages:
You can see that DEMA averages follow price more closely.
Installation of DEMA (Double Expotential Moving Average) in Metatrader4
In Metatrader4 open File menu (left top) and select Open Data Folder. You should see a new window with MT4 folders and files. Something similar to the screen below:
Go to unzipped folder. Move content from MQL4/Indicators to the same folder in MT4 window.
Do the same with templates. Go to the Templates folder and copy content to the same folder in MT4 window.
Questions? Leave a comment and I will try to help you.