Triple Exponential Moving Average, TEMA CFD Technical Analysis & TEMA CFD Signals

Developed by Patrick Mulloy.

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

This a trend following indicator, it was intended to lessen lag of the original 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 three EMAs.

CFDs Analysis & Generating Signals

The TEMA CFD indicator can be traded in the same way as the original moving averages

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

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

Buy Sell Signal

CFD Trading Cross-over Trading Strategy

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

The TEMA crossover system includes 2 or more triple exponential moving averages crossing above/below each other to generate cfd signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals

CFD Trading Cross-over Trading Strategy