Triple Exponential Moving Average (TEMA) Technical Analysis and TEMA Signals
Created by Patrick Mulloy.
This technical indicator was initially employed for trading analyses in stock exchanges and commodities before being adapted for gold analysis.
This indicator tracks the price trend: its original intent was to minimize the inherent delay found in the standard exponential moving average.
The calculation is based on 3 EMAs:
- a single EMA
- a double EMA and
- a triple EMA
The combination of the three EMAs results in a reduced lag compared to any individual EMA.
Technical Analysis and How to Generate Trading Signals
The TEMA technical oscillator can be utilized for trading in a manner identical to the standard moving averages.
The top way to generate signals is by comparing the moving average line to XAUUSD price action.
- A buy signal is generated/derived when both the price & the indicator are moving upward while
- A sell signal is generated/derived when price and the technical indicator are both moving downward.
Buy Sell Trading Signal
XAUUSD Cross-Over Gold System
Another widely used analysis technique of TEMA is the crossover trading system.
TEMA crossover system has two or more triple exponential MAs crossing over or under each other to create trading signals. One technical indicator has fewer periods than the other. This system also means using it with other indicators as extra confirmation for a trade signal.
XAUUSD Cross-Over Method
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