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When compared to a standard exponential moving average, the DEMA indicator is more responsive to recent price data, making it a more popular tool among day traders and swing traders.
Because moving averages are typically viewed as lagging indicators, they may provide trading signals that are at times inaccurate. In contrast, the DEMA removes these false signals and refines entries during strong trends because of how it reacts to price movement resulting in greater probability during momentum.
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