Triple Exponential Moving Average, TEMA Analysis & TEMA Trading Signals
Developed by Patrick Mulloy.
This indicator was originally used for technical analysis in the Stock exchange and Commodities market before being used in crude 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.
Oil Analysis & Generating Signals
The TEMA indicator can be traded in the same way as the original moving averages
The most popular technical analysis method of generating signals is to compare the moving average line and the price action of the crude oil.
- 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 Signal
Oil Cross Over System
Another popular technical 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 signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals
Oil Cross Over System
What is a Trade Plan? - Writing a Plan Example Template
Alternatives: EA Automated Robots or Copier Trading Signals
