Trade Forex Trading

Learn Forex Trading Online Free Tutorials

Triple Exponential Moving Average (TEMA) Forex Technical Analysis and TEMA Forex Trading Signals

Developed by Patrick Mulloy.

This indicator was originally used for technical analysis in the Stock exchange and Commodities exchange market before being used in Forex trading technical analysis.

 - 208 - Triple Exponential Moving Average (TEMA) Technical Indicator - TEMA Indicator Analysis - Indicator MT4 TEMA Indicator - TEMA Indicators for Day Trading Forex

This a trend following indicator, it was intended to lessen the lag of the original exponential moving average.

The calculation is based on three EMAs:

  • a single EMA
  • a double EMA and
  • a triple EMA

The three EMAs when combined produce a lesser amount of lag than any of the three EMAs.

Forex Technical Analysis and Generating Forex Trading Signals

The TEMA Forex 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 price action of the currency pair.

  • A buy signal is generated when both the price and the indicator are moving upwards while
  • A sell signal is generated when the price and the indicator are both moving downwards.

 - 209 - Triple Exponential Moving Average (TEMA) Buy Sell Signal - TEMA Indicator Analysis - Indicator MT4 TEMA Indicator - TEMA Indicators for Day Trading Forex

Buy Sell Signal

Crossover System

Another popular technical analysis method of TEMA is the crossover system.

The TEMA crossover system includes two or more triple exponential moving averages crossing above/below each other to generate trading signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals

 - 210 - Triple Exponential Moving Average Crossover System - TEMA Indicator Analysis - Indicator MetaTrader 4 TEMA Indicator - TEMA Indicators for Day Trading Forex

Crossover System

 

Technical Indicators