Triple Exponential Moving Average (TEMA) Oil Trading Technical Analysis & TEMA Trading Signals

Developed by Patrick Mulloy.

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

This a oil trend following indicator, it was intended to lessen 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 3 EMAs.

Crude Oil Trading Technical Analysis & Generating Trading Signals

The TEMA Oil Trading 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 crude oil price action.

• A buy oil signal is generated when both the crude oil price and the indicator are heading upward while
• A sell oil signal is generated when the crude oil price & the indicator are both moving downwards.

Buy Sell Trading Signal

Crude Oil Trading Crossover Oil Trading System

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

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

Crude Oil Trading Crossover Oil Trading System