Triple Exponential Moving Average MA (TEMA) Analysis and 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 the lag of the original and initial 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 can be traded and transacted in a similar way as the original and initial Moving Averages
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 derived/generated when both the price and the trading indicator are heading and moving upward while
- A sell signal gets derived and generated when the price and the indicator are both heading downward.
Buy Sell Trade Signal
Forex Crossover System
Another popular trading analysis method of TEMA is the crossover trading system.
The TEMA cross-over system includes two or more triple exponential MAs crossing above/below each other to generate trade signals. One indicator has got fewer periods than the other. This system will also include combining it with other indicators as an additional entry confirmation trading signal
Forex Crossover System
More Courses:
- What is Minimum Amount to Trade US 100?
- NETH25 Trade Training Course & Trade NETH 25 Lesson Tutorial
- What is Margin Requirement for 1 Lot of GER30 Index?
- Moving Average(MA) Strategy Analysis Strategies
- Forex Currencies Traded in the Market
- Spinning Tops and Doji Candles Explained
- How to Analyze/Interpret List of Price Action Strategies
- Bollinger Band and XAUUSD Volatility, Analyzing High Low Volatility XAU/USD Markets using Bollinger Band
