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

Created by Patrick Mulloy.

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

This a market trend following indicator, it was intended to lessen the lag of the original and 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 indicator can be traded and transacted in the same way as the original and initial Moving Averages

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 Trade Signal

Indices Cross Over System

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

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

Indices Cross Over System

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