Trade Bitcoin Trading

Analysis of Bitcoin Using the Triple Exponential Moving Average (TEMA) and Associated Trade Signals

Developed & Created by Patrick Mulloy.

This btcusd indicator was first employed in the Stock Exchange and Commodities cryptocurrency market for technical analysis before it was used for cryptocurrency analysis.

Triple Exponential Moving Average (TEMA) for Bitcoin – What is the TEMA Indicator?

This is a bitcoin trend tracking tool, made to reduce the delay of the original exponential moving average calculation.

The calculation is based on 3 EMAs:

  • a single EMA
  • a double Exponential Moving Average and
  • a triple EMA

The combination of the three EMAs results in less lag than any individual EMA.

Bitcoin Analysis and Generating Signals

The TEMA indicator for Bitcoin can be employed for trading actions in a manner analogous to that of traditional moving averages.

The most commonly used method for generating trading signals involves comparing the moving average with Bitcoin's price action trends.

  • A buy cryptocurrency signal gets generated when both the bitcoin price and the indicator are moving upward while
  • A sell cryptocurrency signal is generated/derived when the bitcoin price & the indicator are both moving downwards.

TEMA Buy/Sell Signals for Bitcoin – Using Triple Exponential Moving Average (TEMA)

Buy Sell Signal

BTCUSD Crossover Bitcoin Strategy

Another well-known method of TEMA in technical analysis is the crossover trading strategy.

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

TEMA BTCUSD Indicator

BTCUSD Crossover Bitcoin Strategy

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