Triple Exponential MA (TEMA) Analysis & TEMA Signals
Developed by Patrick Mulloy.
This indicator was originally used for technical analysis in the Stock exchange & Commodities exchange market before being used in technical analysis.
This a 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 3 EMAs when combined produce a lesser amount of lag than any of the 3 EMAs.
Forex Analysis and How to Generate Trading Signals
The TEMA technical indicator can be traded in the same way as the original MAs
The most popular technical analysis technique of generating signals is to compare the MA line & the price action of currency pair.
- A buy signal gets generated when both the price and the indicator are heading upward while
- A sell signal gets generated when price and the indicator are both moving downward.
Buy Sell Signal
Forex Crossover System
Another popular technical analysis technique of TEMA is the cross over system.
The TEMA crossover system includes two or more triple exponential MAs crossing above/below each other to generate trade signals. One indicator has fewer periods than the other. This system also will include combining it with other indicators as additional entry confirmation signals
Forex Crossover System
