Published On: Sat, Feb 23rd, 2013

Triple Exponential Moving Average – TEMA

The Triple Exponential Moving Average is a technical indicator that uses the data from three exponential moving average timeframes at the same time.

The TEMA is used by traders who are looking for buying and selling indicators much like the pairing of the long term – short term moving average.  In TEMA’s case, the addition of a mid-range timeframe moving average has the effect of smoothing the price variations and price volatility while offering what is considered by many traders to be a more accurate trading signal.  The TEMA is most accurate with longer timeframes but loses accuracy in shorter term trading time horizons.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.