DEMA & TEMA
Data regarding DEMA & TEMA.
What are DEMA & TEMA?
DEMA and TEMA apply EMA multiple times to reduce lag while maintaining smoothness.
DEMA = 2×EMA(n) - EMA(EMA(n))
TEMA = 3×EMA(n) - 3×EMA(EMA(n)) + EMA(EMA(EMA(n)))
TEMA = 3×EMA(n) - 3×EMA(EMA(n)) + EMA(EMA(EMA(n)))
Comparison
- EMA: Standard exponential - some lag
- DEMA: ~50% less lag than EMA
- TEMA: ~75% less lag than EMA
- Trade-off: Less lag = more responsive but more whipsaws
When to Use
- Fast trending markets where lag costs money
- Short-term trading where speed matters
- As signal line in custom indicators