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

Developed by Patrick Mulloy.

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

This a trend following technical indicator, it was intended to lessen the 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 three EMAs.

Technical Analysis & How to Generate Trade Signals

The TEMA 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 price action of the energies.

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

Buy Sell Trading Signal

Energies Trading Cross Over Trading System

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 signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals

Energies Trading Cross Over Trading System