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 market trend following trading 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.
FX Analysis and How to Generate 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 Moving Average line & the price action of currency pair.
- A buy signal gets generated when both the price and the trading indicator are heading upward while
- A sell signal gets generated when the price and the trading indicator are both heading downwards.
Buy Sell Trade Signal
Forex Crossover System
Another popular trading analysis technique of TEMA is the crossover trading system.
The TEMA crossover system includes two or more triple exponential MAs crossing above/below each other to generate trade signals. One trading indicator has fewer periods than the other. This system will also include combining it with other trading indicators as additional entry confirmation signals
Forex Crossover System
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