Triple Exponential Moving Average (TEMA) Indices Technical Analysis and TEMA MT5 Stock Indexes Indicator
Developed by Patrick Mulloy.
This MetaTrader 5 stock indices indicator was originally used for technical analysis in the Stock exchange and Commodities stock indices market before being used in stock indexes trading technical analysis.
This a indices trend following 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 EMA and
- a triple EMA
The three EMAs when combined produce a lesser amount of lag than any of the three EMAs.
Indices Technical Analysis and Generating Indices Trading Signals
The TEMA MT5 Indices Indicator can be traded in the same way as the original moving averages
The most popular technical analysis method of generating indices trading signals is to compare the moving average line and the stock indexes price action of the indices.
- A buy stock indices signal is generated when both the stock indexes price and the MetaTrader 5 stock indices indicator are moving upwards while
- A sell stock indices signal is generated when the stock indexes price and the MetaTrader 5 stock indices indicator are both moving downwards.
Buy Sell Indices Trading Signal
Another popular technical analysis method of TEMA is the crossover system.
The TEMA crossover system includes two or more triple exponential moving averages crossing above/below each other to generate stock indexes trading signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals