Corrected Generalized DEMA for Trend Signals
Summary
The document explains a moving-average indicator that combines generalized double exponential moving average (GDEMA) with a correction method attributed to Alexander Uhl. DEMA combines an exponential moving average with a second smoothing of that average; GDEMA adjusts the component weights to change the indicator’s responsiveness. The correction is intended to produce a corrected GDEMA, and floating levels are added to help identify trends.
The indicator can change color when its slope changes or when it crosses floating outer, middle, or average-value levels. The document suggests using the selected color change as a signal. It provides a conceptual description but no formula for the correction, parameter guidance, market examples, or test results. It therefore does not establish whether the signals are profitable or how they perform across instruments and market conditions.
Key ideas
- DEMA combines a single exponential average with a second exponential smoothing of that average.
- GDEMA changes the weighting factors to adjust the moving average’s responsiveness.
- The described correction is attributed to Alexander Uhl, but its calculation is not specified.
- Floating levels and color changes provide several possible ways to identify trend signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.