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docs/indicators/averages/dema/calc.md

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+# The Math Behind DEMA
+
+## Components of DEMA
+
+DEMA is composed of two main components:
+
+1. Exponential Moving Average (EMA)
+2. A "double smoothing" factor
+
+Let's break these down:
+
+### EMA Calculation
+
+The Exponential Moving Average (EMA) is calculated as:
+
+$ EMA_t = \alpha \cdot P_t + (1 - \alpha) \cdot EMA_{t-1} $
+
+Where:
+- $EMA_t$ is the EMA value at time $t$
+- $P_t$ is the price at time $t$
+- $\alpha$ is the smoothing factor, calculated as $\frac{2}{n+1}$
+- $n$ is the number of periods
+
+### DEMA Formula
+
+The DEMA is then calculated using the following formula:
+
+$ DEMA_t = 2 \cdot EMA_t - EMA(EMA_t) $
+
+Where:
+- $DEMA_t$ is the DEMA value at time $t$
+- $EMA_t$ is the EMA of the price
+- $EMA(EMA_t)$ is the EMA of the EMA
+
+## Calculation Process
+
+1. Calculate the EMA of the price series.
+2. Calculate another EMA on the result of step 1.
+3. Multiply the first EMA by 2.
+4. Subtract the second EMA from the result of step 3.
+
+This process effectively reduces lag while maintaining smoothness.
+
+## Parameter
+
+DEMA uses a single parameter:
+
+- **Period** ($n$): Determines the number of periods used in the EMA calculations. This affects the overall reactivity and smoothness of the indicator.