Triple Exponential Moving Average (TEMA) Commodities Technical Analysis and TEMA Trading Signals
Developed by Patrick Mulloy.
This commodity indicator was originally used for technical analysis in the Stock exchange and Commodities market before being used in commodities trading technical analysis.
This a commodity 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 three EMAs when combined produce a lesser amount of lag than any of the 3 EMAs.
Commodity Technical Analysis & Generating Trading Signals
The TEMA Commodities technical indicator can be traded in the same way as the original moving averages
The most popular technical analysis method of generating trading signals is to compare the moving average line and the commodities price action of the commodity.
- A buy commodity signal is generated when both the commodities price and the indicator are heading upwards while
- A sell commodity signal is generated when the commodities price and the indicator are both moving downwards.
Buy Sell Trading Signal
Commodity Trading Crossover Commodities Trading System
Another popular technical analysis method 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 commodity signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals
Commodities Trading Crossover Commodity Trading System
