What is Double Moving Average?
Moving Average Double draws two moving averages of the same price, a shorter one (14 bars by default) and a longer one (21 bars). Both use the same averaging method, chosen with one setting: simple, exponential, smoothed, weighted or volume-weighted. Changing the method changes both lines together, which keeps the pair comparable.
It shows how a shorter and a longer average relate to each other and to price. It does not mark crossings, confirm trend strength or predict future prices. For a pair with the crossings marked, use MA Cross.
How to use Double Moving Average
- The order of the lines. The shorter average above the longer one means recent prices are above the longer window's average, which is read as context for an uptrend. Below it, the reverse.
- The gap between them. A widening gap means the recent window is pulling away from the longer one. A narrowing gap usually means the move is slowing.
- The lines crossing. When the shorter average crosses the longer one, the recent window has overtaken it. This is a lagging fact, not a forecast.
- The method. SMA is the steadiest, EMA and WMA turn sooner, SMMA is the slowest for a given length, and VWMA gives more weight to high-volume bars.
These are ways to read the lines, not entry signals on their own.
Settings
| Setting | Default | What it changes |
|---|---|---|
| Method | SMA | The averaging method for both lines. Options are SMA, EMA, SMMA (RMA), WMA and VWMA. |
| Source | Close | Which price both averages use. Open, high, low and the averaged sources such as hl2 and hlc3 are also available. |
| Length 1 | 14 | Bars in the first average. Minimum 1. |
| Length 2 | 21 | Bars in the second average. Minimum 1. |
The two lengths can be set in either order; the line colours stay with Length 1 (blue) and Length 2 (orange).
Calculation
Both lines are the same kind of average of the same source, at two lengths:
MA 1 = average(price, 14)
MA 2 = average(price, 21)
SMA: plain average of the last n bars
EMA: alpha = 2 / (n + 1)
SMMA: alpha = 1 / n (Wilder's smoothing)
WMA: weights n, n - 1, ... 1, newest heaviest
VWMA: average of price weighted by each bar's volumeEach line is drawn once it has enough bars for its length, so the longer line starts a few bars after the shorter one. The EMA and SMMA methods start from a simple average of the first bars and settle from there.
Limitations
- It lags. Both lines are built from past prices, and the longer one lags more.
- Sideways markets produce repeated crossings. With no trend, the two lines sit close together and cross often.
- VWMA needs volume. On markets with thin or unreliable volume, the volume-weighted method can jump around.
- The live candle moves. The current bar's values change until that bar closes.
- It is not a strategy. On its own it carries no risk management, sizing or exit.
Frequently asked questions
It is two moving averages of the same price at different lengths, 14 and 21 by default, that share one averaging method so they can be compared directly.
The shorter line above the longer one suggests recent prices are above the longer-term average; below it, the reverse. A widening gap suggests the move is extending, a narrowing gap that it is slowing.
Yes. The indicator declares four inputs: Method, default SMA, with EMA, SMMA (RMA), WMA and VWMA also available; Source, default close; Length 1, default 14; and Length 2, default 21. Both lengths have a minimum of 1.
No. Values on closed bars are not revised. The current candle's values move while that candle is live and settle when it closes. With the EMA or SMMA method, loading older history recalculates the averages and values near the start of the loaded range can shift.
Use the Add to chart button at the top of this page. It opens BTC/USDT on Binance in the Altrady Charts terminal with the built-in Moving Average Double already applied. On any other market, open the indicator picker on the chart and choose Moving Average Double from the Moving Average group.