Triple Exponential MA (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 analysis.
This a gold trend following indicator, it was intended to lessen lag of the original exponential moving average MA.
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 and How to Generate Signals
The TEMA technical indicator can be traded in the same way as the original MAs
The most popular analysis technique of generating signals is to compare the moving average line and the price action.
- A buy signal gets generated when both the price & the technical indicator are heading upwards while
- A sell signal gets generated when price and the technical indicator are both heading downward.
Buy Sell Trading Signal
XAUUSD Trading Cross-over System
Another popular analysis technique of TEMA is the cross-over trading method.
The TEMA crossover system includes two or more triple exponential MAs crossing above/below each other to generate trading signals. One technical indicator has fewer periods than the other. This system will also include combining it with other trading indicators as additional entry confirmation signals
XAUUSD Trading Cross-over System
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