Reducing Moving Average Lag with DEMA
Summary
The document presents a moving-average indicator that applies the double exponential moving average calculation to reduce lag relative to a previously described zero-lag moving average. It frames the change as an attempt to make the average respond faster to price changes.
No formula, parameter guidance, comparison chart, or empirical test is provided. The claim of lower lag is therefore qualitative, and the text does not establish whether the modified average improves trading decisions or performance. Readers would need implementation details and testing across instruments and market conditions before drawing conclusions about its practical value.
Key ideas
- The indicator uses DEMA in an effort to reduce moving-average lag.
- It is presented as faster responding than the referenced zero-lag moving average.
- The document gives no calculation details or parameter guidance.
- No performance evidence is provided to show that reduced lag improves results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.