Triple Exponential Moving Average Indicator (TEMA) MT4 - [TradingFinder]

The Triple Exponential Moving Average (TEMA) indicator is one of the advanced technical analysis tools designed to identify trends and reduce lag.

This indicator was introduced by Patrick Mulloy, and its main purpose is to improve the performance of simple moving averages (SMA) and exponential moving averages (EMA).

In the TEMA trading tool, price data is smoothed and calculated multiple times, but in such a way that the lag caused by smoothing is removed; thus, the indicator responds to price changes faster and more accurately.

Triple Exponential Moving Average Indicator Table

The general features of the Triple Exponential Moving Average indicator are presented in the table below:

Triple Exponential Moving Average Indicator at a Glance

The TEMA (Triple Exponential Moving Average) indicator is an advanced tool for identifying market trends that provides a clear view of price direction by reducing lag and noise.

This indicator, by smoothing price action and giving more weight to recent data, reacts faster to market changes. Traders can identify suitable entry and exit points based on the color change and slope of the TEMA line.

Indicator in Bullish Trend

The price chart below shows the GBP/CAD currency pair on the 4-hour timeframe.

When the TEMA line turns upward and changes to blue, this indicates the entry of buying power and an increased probability of a bullish continuation in the market; under such conditions, favorable opportunities for entering buy trades can be created.

Indicator in Bearish Trend

The price chart below shows the Bitcoin cryptocurrency index (BTC/USD) on the 30-minute timeframe.

When the TEMA line turns downward and changes to red, this condition indicates seller pressure and increased supply in the market.

Such a situation is usually a sign of a bearish continuation and is considered a signal for entering sell trades.

Triple Exponential Moving Average Indicator Settings

The image below shows the settings panel of the Triple Exponential Moving Average Indicator:

• Apply To: Apply on closing price
• Period: Indicator calculation period
• Shift: Indicator displacement on the chart
• Show In Color: Display the indicator line in color
• Number of bars counted (0=all bars): Number of candlesticks calculated
• ALERT: Enable alert
• EMAIL: Send alerts via email
• NOTIFICATION: Send notification to mobile
• Emails Number: Number of emails sent if alert is enabled
• Number of sounds after Signal: Number of times alert sound plays after signal
• Pause in sec between sounds: Time interval (in seconds) between each alert sound

Conclusion

The Triple Exponential Moving Average Indicator, by eliminating the lag of moving averages, is a fast and accurate tool for identifying market trends.

This indicator, by simplifying price action and reducing noise, enables traders to identify suitable entry and exit points.

In a bullish trend, the line changing to blue, and in a bearish trend, changing to red, generates buy and sell signals respectively.