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What is the difference between a Dema and a moving average?
Let us look at the differences when the number of days for the DEMA is changed: The black line is the 50-day DEMA, detached from the stock prices, compared to the green line, which is the 9-day DEMA. The moving averages are dependent on the last data point.Is dema good for long-term trading?
DEMA is well-suited for short-term traders due to its reduced lag and increased responsiveness. Long-term investors, however, may find traditional moving averages more useful. Do I need to adjust my trading strategies for use with DEMA?What is the difference between a rising Dema and a falling Dema?
A rising DEMA signifies a possible rising price, whereas a falling DEMA signifies a potential price drop. The price point of an asset above the DEMA is likely to rise, and the price point below the DEMA is expected to fall. A falling price trend may reverse if the asset price moves above the DEMA.