Triple Exponential Moving Average (TEMA) Trading Analysis and TEMA Trading Signals

Developed by Patrick Mulloy.

This gold indicator was originally used for analysis in the Stock exchange and Commodities gold market before being used in trading analysis.

This a gold 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 Exponential Moving Average and
• a triple EMA

The 3 EMAs when combined produce a lesser amount of lag than any of the 3 EMAs.

XAUUSD Trading Analysis & How to Generate Trading Signals

The TEMA technical indicator can be traded in the same way as the original moving averages

The most popular analysis technique of generating trading signals is to compare the moving average line and the price action.

• 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 downward.

Buy Sell Trading Signal

XAUUSD Trading Cross-over Trading System

Another popular analysis technique of TEMA is the cross over system.

The TEMA crossover system includes two or more triple exponential moving averages crossing above/below each other to generate trading signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals

XAUUSD Trading Cross-over Trading System