Triple Exponential Moving Average (TEMA) Technical Analysis and TEMA 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.
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 Technical Analysis & How to Generate Signals
The TEMA Forex technical indicator can be traded in the same way as the original moving averages
The most popular technical analysis technique 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 & the indicator are heading upwards while
- A sell signal is generated when price & the indicator are both moving downward.
Buy Sell Signal
Forex Crossover FX Trading System
Another popular technical analysis technique of TEMA is the cross over 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
Forex Crossover FX Trading System
