8.4 Double and Triple Exponential Moving Average

The double exponential moving average (DEMA) and triple exponential moving average (TEMA) are combination EMAs (see Exponential Moving Average) by Patrick Mulloy, designed to track recent prices even more closely than the plain EMA. The calculation for DEMA is

DEMA = 2*EMA[N] - EMAofEMA[N]

and for TEMA,

TEMA = 3*EMA[N] - 3*EMAofEMA[N] + EMAofEMAofEMA[N]

Both are “overweight” on recent points so the moving average can actually get ahead of recent prices in some unusual price patterns. The following graph shows the DEMA weights for N=15.

And the following is TEMA for the same N=15.

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