T3 Moving Average Technical Analysis & T3 Moving Average Trading Signals
T3 uses a Smoothing factor/technique to produce trading signals that are similar to those of the moving averages, but are more accurate than those of the MA. The T3 is a modification of method used to calculate the original Moving Average and it has a smoother curve and it does not lag the market as much as the MA. This Indicator follows price action and adjusts itself to the direction of the market.
Energy Technical Analysis and Generating Trading Signals
T3 moving average is similar to the original MA, and it can be traded in the same way as the original Moving Average indicator.
Moving Average Energy Trading Crossover Trading Signal
This Method involves using two T3 Moving Average and generating trading signals when the two cross each either upwards generating an upward trend signal or cross downwards generating a downward trend Signal.
Crossover Signal
Bullish Trend - Prices are bullish as long as price action remains above the indicator. When this move happens it implies that energies prices are bound to continue moving upwards.
Bearish Trend - Prices are bearish as long as price action remains below the T3 Average. When the price is below the indicator it implies that energies price is bound to continue moving downwards.
Whipsaws - This is a smoothed indicator which is not prone to giving out whipsaws, since it is smoothed it is less responsive to price spikes, therefore a price spike will not skew the data used to calculate and draw it.