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

Developed by Patrick Mulloy.

This indicator was originally used for technical analysis in the Stock exchange and Commodities stock indices market before being used in stock indices 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 three 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.

Indices Technical Analysis & Generating Trading Signals

The TEMA Indices 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 stock indices trading price action.

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

Buy Sell Trading Signal

Indices Trading Crossover Stock Indices Trading System

Another popular technical analysis technique 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 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

Indices Trading Crossover Stock Indices Trading System