The double exponential moving average can give traders a view of the long-term trend and because it is more sensitive it is a faster-moving average with less lag time. This can also enable traders to spot reversals quicker.
The double exponential moving average can help identify trend direction, signal potential short-term trend changes or pullbacks, and provide dynamic support or resistance.
Calculation:
DEMA( n ) = ( 2 * EMA( n ) ) - ( EMA( EMA( n ) ) )