Patrick Mulloy is the brain behind the Generalized double DEMA Metatrader 5 forex indicator which he designed in an attempt to shrink the amount of lag time that is present in traditional moving averages.
The indicator was first introduced in the Technical Analysis of Stocks & Commodities February 1994 magazine edition under an article titled “Smoothing Data with Faster Moving Averages” by Mulloy.
The calculations of the Double Exponential Moving Average is based on the combination of a single EMA and a double EMA to form a new EMA.
The indicator can be used as a regular average or it can be deployed using the change of color of its line as an alert trigger.
The USD/CHF H4 chart below displays the Generalized double DEMA Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the line of the Generalized double DEMA Metatrader 5 forex indicator turns medium sea green.
Sell Signal: Go short when the line of the Generalized double DEMA Metatrader 5 forex indicator turns dark orange.
Exit buy trade: Close all buy orders if while a bullish trend is running, the line of the Generalized double DEMA indicator reverts to dark orange.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the line of the Generalized double DEMA indicator changes to medium sea green.
Tips: The Generalized double DEMA indicator is well-suited for trending markets and can act like a standalone technical trend tool.
It works for scalpers, day traders and swing traders.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Double DEMA period, Double DEMA volume factor, Price), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Generalized double DEMA.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)