Triple Exponential MA (TEMA) Commodities Technical Analysis and TEMA Trading Signals
Developed by Patrick Mulloy.
This indicator was originally used for analysis in the Stock exchange and market before being used in technical analysis.
This a trend following indicator, it was intended to lessen lag of the original exponential moving average.
The calculation is based on 3 EMAs:
- a single EMA
- a double EMA and
- a triple EMA
The three EMAs when combined produce a lesser amount of lag than any of the 3 EMAs.
Commodity Analysis & Generating Trade Signals
The TEMA Commodities technical indicator can be traded in the same way as the original moving averages
The most popular analysis method of generating trading signals is to compare the moving average line and the price action of the commodity.
- A buy signal is generated when both the price and the indicator are heading upwards while
- A sell signal is generated when the price and the indicator are both moving downwards.
Buy Sell Trading Signal
Commodity Trading Cross Over Commodities System
Another popular analysis method of TEMA is the cross over system.
The TEMA crossover system includes 2 or more triple exponential moving averages crossing above/below each other to generate commodity signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals
Commodities Trading Cross Over Trading System