Double Exponential Moving Average Construction and Three-MA Clouds

Summary

This document introduces an indicator built around a double exponential moving average. It defines the first average as an EMA of price, the second as an EMA of that first average, and the double EMA as twice the first value minus the second. The indicator uses three moving averages to draw colored cloud regions, though the document does not explain how to interpret those regions as trading signals.

It identifies a supporting smoothing library required by the implementation and notes that the indicator was originally written in MQL4 before publication in a code library. No market, parameter choices, trading rules, backtest, or performance evidence are supplied. The material is therefore useful as a compact description of the indicator’s calculation and implementation context, but it does not establish that the indicator improves entry timing or returns.

Key ideas

• The indicator derives a second exponential average by smoothing the first EMA.
• Its double EMA is calculated as twice the first EMA minus the second EMA.
• Colored clouds are drawn using three moving averages.
• The implementation depends on a separate smoothing library.
• The document provides no signal rules or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.