A Faster MACD Variant Using DEMA and Two Discontinued Signal Lines
Summary
This document describes a variation on MACD that substitutes double exponential moving averages for the usual exponential moving averages. It also replaces a single signal line with two discontinued signal lines, which the author presents as levels that may help identify short-term reversals and filter false signals.
The stated rationale is that combining DEMA with the two-line arrangement produces responses faster than regular MACD. The document says this impression comes from tests, but provides no test design, asset or timeframe, parameter settings, numerical results, or comparison against other indicators. Accordingly, the claimed improvement should be treated as an unverified description rather than established evidence. It offers a concise indicator concept, but does not specify entry, exit, or risk rules for turning the signals into a complete trading strategy.
Key ideas
- The indicator uses double exponential moving averages in place of standard exponential moving averages.
- It uses two discontinued signal lines rather than one conventional signal line.
- The two lines are intended to act as levels and may help detect short-term reversals.
- The author reports faster responses and fewer false signals based on tests, without providing test details.
- The document does not define a full trading system or report quantified performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.