Triple Exponential MA (TEMA) Analysis and TEMA Signals

Developed by Patrick Mulloy.

This indicator was originally used for technical analysis in the exchange and Commodities market before being used in 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 three EMAs when combined produce a lesser amount of lag than any of the three EMAs.

Stock Technical Analysis & Generating Signals

The TEMA 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 stocks.

• A buy signal is generated when both the price and the indicator are moving upward while
• A sell signal is generated when the price and the indicator are both heading downward.

Buy Sell Signal

Stock Crossover Stocks Strategy

Another popular technical analysis method of TEMA is the cross-over system.

The TEMA crossover system includes 2 or more triple exponential moving averages crossing above/below each other to generate signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals

Stock Crossover Strategy