Triple Exponential MA (TEMA) Technical Analysis & TEMA Trading Signals

Created by Patrick Mulloy.

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

This a trend following indicator, it was intended to lessen lag of the original exponential Moving Average.

The calculation is based on three 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 Trade Signals

The TEMA indicator can be traded in the same way as the original MAs

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 gets generated when both the stock price & the indicator are moving upwards while
• A sell stock signal gets generated when the stock price & the indicator are both moving downwards.

Buy Sell Signal

Indices Cross Over System

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

The TEMA cross-over 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 also will include combining it with other indicators as additional entry confirmation signals

Indices Cross Over System