DEMA stands for Double Exponential Moving Average. As the name suggests, the DEMA indicator is a trend following moving average type of indicator which comes from the Exponential Moving Average Moving average calculation method developed by Patrick Mulloy. The concept of the Double Exponential Moving Average was first introduced by Patrick Mulloy in an article entitled Smoothing Data with Faster Moving Averages. This article was published in the February 1994 issue of Technical Analysis of Stocks and Commodity Futures. (1) The Double Exponential Moving Average DEMA is more suitable for short term or intra-day trading. As a class of fast-reacting moving averages, the DEMA is more useful as a guide to short-term price direction, so many short term traders or intraday traders may consider using the DEMA. the DEMA is less significant in trend identification and judgement. Many traders may also argue that the DEMA can be adjusted to a larger period, for example, using a 100 or 200 period DEMA, and the trend can be identified as well. However, in my opinion, such a usage goes against the original design of the DEMA. In other words, the traditional EMA is sufficient to identify the trend, and there is no need to use the DEMA, which is designed to react quickly to price, so it is only logical to use it in short term/internal day trading. (2) A rapid rise in the DEMA and a rapid rise in price above the DEMA corresponds to the best bullish market. The reverse is also true. When the DEMA and price show this trend, it generally corresponds to a market spike/spike down. The chart above shows that in Poundland's recent uptrend, the DEMA rose rapidly while price, which is above the DEMA, also rose rapidly, and subsequently the corresponding price action showed the best uptrend. It is clear that the DEMA provides support/resistance during such spikes/spikes and that this support and resistance is most closely aligned to price, and we can even use the DEMA as the first support/resistance level, thus giving the quickest warning signal when the trend changes. It is for this reason that the DEMA is often used as an exit indicator, especially in a spike/spike down move. (3) Using the DEMA in combination with other technical indicators. There are two logics that can be used as a reference here. A: We can first use the DEMA to identify a "surge" in a large cycle, which is reflected in a rapid movement of the DEMA and constitutes support or resistance to price, and then we can go back to the small cycle charts and use other oscillators to join this rapid movement. B: First use other trend indicators to discern the trend in the larger cycle, then return to the smaller cycle charts and use the DEMA to construct appropriate entry and exit rules. (4) The DEMA indicator uses a formula with two layers of exponential moving averages. It basically doubles the current EMA and then subtracts the EMA of the current EMA from the double current EMA. The following formula shows how to calculate the DEMA line. TERM = 2 x EMAn - EMA of EMAn This type of formula effectively puts more weight on the current price movement, making it more responsive to price movements. The DEMA line is a modification of the EMA line that enhances its responsiveness to price movements. This is why the DEMA line can be an effective trend reversal signal line. However, as with most moving average crossover setups, it can still produce false signals in a volatile market range. It is best to use this technique in conjunction with long-term trading setups.
What has been described above is just the basics of cryptocurrencies, which are relevant to our ability to make money with them. In addition to the scientific approach to making money with cryptocurrencies, it is also important to find ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC". https://accounts.binance.com/en/register?ref=Q022W7SC
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