Generalized DEMA: Adjusting EMA Lag with Secondary Smoothing

Summary

The document explains the Generalized DEMA (GD) moving average, which combines a price’s exponential moving average with a second exponential smoothing of that average. A volume factor controls the secondary smoothing contribution, while the period and applied price are the other inputs.

The calculation weights the first EMA by one plus the volume factor, then subtracts the volume factor times the second EMA. This construction describes how the indicator is formed, but the document provides no trading rules, performance evidence, or guidance for choosing parameter values. It should therefore be treated as an indicator definition rather than evidence that GD predicts prices or improves a strategy.

Key ideas

• GD combines an initial exponential moving average with a second EMA applied to the first.
• The volume factor controls how strongly the secondary smoothing affects the result.
• The indicator also requires a calculation period and an applied price.
• The document defines the calculation but gives no performance evidence or parameter-selection guidance.

Tags

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