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INDICATORS · DOUBLE EMA

Double EMA in Crypto: Why the Value Changes Before Candle Close

The double exponential moving average subtracts lag by combining an EMA with an EMA of that EMA. The live bar enters with roughly twice the usual weight.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

DEMA = 2 × EMA(N) − EMA(EMA(N)). The first term doubles the live price's α weight; the second term removes some of it back, but less, because the double-smoothed EMA reacts slower. Net, DEMA moves noticeably more per tick than a plain EMA of the same length. For a 20-period DEMA, the live-bar sensitivity is close to 2α − α² ≈ 0.18 versus 0.095 for the EMA. Crosses of price and DEMA are least stable intrabar of the common averages except Hull and TEMA.

Which part of DEMA uses the live bar

ComponentUses current bar?Effect intrabar
EMA(N)Yesα weight
EMA(EMA(N))Yes≈ α² weight
DEMAYes≈ 2α − α² weight

With α = 0.095, 2α − α² ≈ 0.181. A $500 intrabar swing therefore moves a 20-DEMA by about $90.

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How much it moves inside one bar

DEMA during one bar (illustrative)DEMA during one bar (illustrative): OPEN: DEMA 59,980; MID: −$500: ≈ 59,890; LATE: +$400; CLOSE: ≈ 59,975.OPENDEMA 59,980MID−$500: ≈ 59,890LATE+$400CLOSE≈ 59,975
Only DEMA's closing value is kept in history. Original ChartsPod editorial graphic.
Illustrative intrabar range of DEMA vs its closed valueIllustrative intrabar range of DEMA vs its closed value: 20-EMA live weight 0 ; 20-DEMA live weight 0 .ILLUSTRATIVE INTRABAR RANGE OF DEMA VS ITS CLOSED VALUE20-EMA live weight020-DEMA live weight0
How far DEMA travels inside a bar versus between bars. Original ChartsPod editorial graphic.

Rules

DEMA signal hygieneDEMA signal hygiene: Signals on closed bars; Bar-close alerts; Backtest uses the same rule; Live value labelled provisional; Settings identical across chart and alerts.DEMA SIGNAL HYGIENESignals on closed barsBar-close alertsBacktest uses the same ruleLive value labelled provisionalSettings identical across chart and alerts
Closed values are what history shows. Original ChartsPod editorial graphic.

Related: EMA in Crypto: Why the Value Changes Before Candle Close (EMA), Triple EMA in Crypto: Why the Value Changes Before Candle Close (TEMA).

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Questions readers ask

Why does DEMA move more than EMA?

It doubles the EMA's live weight before subtracting the slower term.

How much more?

≈ 2α − α² vs α.

Use closed bars?

Yes.

Sources and methodology

Indicator formulas are standard definitions; live-versus-closed behaviour follows TradingView's repainting documentation. Values in examples are illustrative.

  1. TradingView Pine Script: Repainting — live vs historical calculation.
  2. ChartsPod indicator reference — indicator calculations.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.