Syntax
public DEMA(DataSeries ds, int period1, int period2, string description)
public static DEMA(DataSeries ds, int period1, int period2)
Parameter Description
| ds | DataSeries |
| period1 | Length used to create the EMA |
| period2 | Length used to double smooth the EMA |
Description
The
Double Exponential Moving Average (DEMA) by Patrick G. Mulloy was introduced in his January 1994 article in the "Technical Analysis of Stocks & Commodities" and attempts to remove the moving average lag by emphasizing its more recent values. Accordning to Mulloy,
"the DEMA is not just a double EMA with twice the lag time of a single EMA, but is a composite implementation of single and double EMAs producing another EMA with less lag than either of the original two."Calculation
DEMA = 2*EMA - EMA(EMA)Interpretation
Similar to
EMA.
Example
using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;
namespace WealthLab.Strategies
{
public class MyStrategy : WealthScript
{
protected override void Execute()
{
// Dual DEMA CrossOver System
var dema1 = DEMA.Series( Close, 12, 26 );
var dema2 = DEMA.Series( Close, 21, 55 );
PlotSeries( PricePane, dema1, Color.Red, LineStyle.Solid, 2 );
PlotSeries( PricePane, dema2, Color.Blue, LineStyle.Solid, 2 );
// DEMA is one of unstable indicators, initialize the loop accordingly
for(int bar = 55*3; bar < Bars.Count; bar++)
{
if (IsLastPositionActive)
{
if( CrossUnder( bar, dema1, dema2 ) )
SellAtMarket( bar+1, LastPosition );
}
else
{
if( CrossOver( bar, dema1, dema2 ) )
BuyAtMarket( bar+1 );
}
}
}
}
}