Triple Exponential Moving Average (TEMA) Stocks Technical Analysis and TEMA Stocks Signals
Developed by Patrick Mulloy.
This stocks indicator was originally used for technical analysis in the Stock exchange and Commodities stocks market before being used in stock trading technical analysis.
This a stocks 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.
Stock Technical Analysis and Generating Stocks Signals
The TEMA Stocks 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 stocks price action of the stocks.
- A buy signal is generated when both the stocks price and the indicator are moving upwards while
- A sell signal is generated when the price and the indicator are both moving downwards.
Buy Sell Stocks Signal
Stock Trading Crossover Stocks Trading 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 stocks 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 Trading Crossover Stock Trading System
