Triple Exponential Moving Average, TEMA Oil Technical Analysis and TEMA Trading Signals
Developed by Patrick Mulloy.
This oil indicator was originally used for technical analysis in the Stock exchange and Commodities oil market before being used in crude trading analysis.
This a oil 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.
Oil Technical Analysis & Generating Crude Trading Signals
The TEMA Oil 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 crude oil price action of the crude oil.
- A buy oil signal is generated when both the crude oil price and the indicator are heading upwards while
- A sell oil signal is generated when the crude oil price and the indicator are both moving downwards.
Buy Sell Trading Signal
Oil Trading Crossover Crude 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 oil signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals
Oil Trading Crossover Crude Trading System
