Triple Exponential Moving Average (TEMA) Commodity Trading Technical Analysis & TEMA Trading Signals
Developed by Patrick Mulloy.
This commodity technical indicator was originally used for technical analysis in the Stock exchange and commodity market before being used in Commodity 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 Exponential Moving Average and
- a triple EMA
The three EMAs when combined produce a lesser amount of lag than any of the 3 EMAs.
Commodities Trading Technical Analysis & How to Generate Trading Signals
The TEMA Commodity Trading 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 commodity price action.
- A buy signal is generated when both the commodity price and the indicator are heading upward while
- A sell signal is generated when price and the indicator are both heading downward.
Buy Sell Trading Signal
Commodities Trading Crossover Commodity Trading System
Another popular technical analysis method of TEMA is the cross over system.
The TEMA crossover system includes two or more triple exponential moving averages crossing above/below each other to generate commodities 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
