Triple Exponential Moving Average (TEMA) Technical Analysis & TEMA Trading Signals

Developed by Patrick Mulloy.

This stock tool was first used to look at trading in the Stock exchange and Commodities stock market before it was used for stock technical analysis.

This is a market tool to follow trends, made to make up for the slowness of the initial exponential moving average.

The calculation is based on 3 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.

Technical Analysis and Generating Signals

The TEMA can be actively traded and managed in the identical manner as the established and initial Moving Average indicators.

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

• A buy signal is generated when both the stock price & the indicator are moving upwards while
• A sell stock signal is generated/derived when the stock price & the indicator are both moving downwards.

Buy Sell Signal

Indices Cross Over System

The crossover method is another widely used technique in technical analysis known as TEMA.

The TEMA system involves two or more triple exponential moving averages going above or below one another to give signals. One has fewer periods than the other. This plan also means adding it to other indicators as an extra signal to confirm a trade.

Indices Cross Over System

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