Triple Exponential MA (TEMA) Analysis & TEMA Trading Signals

Developed by Patrick Mulloy.

This indicator was originally used for technical analysis in the exchange and Commodities market before being used in stocks 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 Exponential Moving Average and
• a triple EMA

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

Trading 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.

• A buy signal is generated when both the price and the indicator are heading upward while
• A sell signal is generated when the price & the indicator are both moving downwards.

Buy Sell Trading Signal

Stocks Cross-over Stocks Strategy

Another popular technical analysis method of TEMA is the cross over system.

The TEMA cross-over system includes two 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

Stock Cross-over Stocks Strategy