Double Weighted Moving Average

The Double Weighted Moving Average for NinjaTrader 8

The DEMA was first presented by Patrick Mulloy in Stocks & Commodities in 1994. This indicator replicates the DEMA formula, applying it to the WMA (weighted moving average) instead of the EMA.

Indicator Description

The Double Weighted Moving Average (DWMA) is commonly used in time series analysis, although less known than the DEMA. Generally, the indicator is more responsive to price changes while in a trend, but has a tendency to overshoot once the trend changes.

The indicator is available for NinjaTrader 8.