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