Triple Exponential Moving Average (TEMA) is a moving average (MA) that gives the most weight to recent price data.TEMA is more reactive to all price fluctuations than a Simple Moving Average (SMA) or an Exponential Moving Average (EMA) or
even a Double Moving Average (DEMA) and surely can help traders to spot
reversals sooner because it responds very fast to any changes in market
activity. TEMA was developed by Patrick Mulloy in an attempt to reduce the
amount of lag time found in traditional moving averages (TASC_ 1994)
and so get more reliable Crossovers. TEMA can also be used as a component in a lot of indicators
like Moving Average Convergence Divergence (MACD) and Mov.Average of Oscillator
(MAOsc) that are based on Moving Average types and can be modified to use a
TEMA instead of other more traditional
types of Moving Averages.
Inputs
Basic Settings
- Select
Period for TEMA – It is the number of Bars that we Look Back on
the Chart in order to calculate TEMA. - Select
Price TEMA applied to – It is
the price we use in TEMA calculation. By default we use the price of
Close.
Line Settings
- Select Line
Style of TEMA Indicator - Select Line
Width of TEMA Indicator - Select Line
Color of TEMA Indicator