Triple Exponential Moving Average (TEMA)
The Triple Exponential Moving Average (TEMA) is a technical analysis indicator used to identify trends and smooth out price action. It is a type of moving average that is more responsive to price changes than a simple moving average (SMA) and less prone to whipsaws than an exponential moving average (EMA). TEMA is calculated by taking the exponential moving average of the price three times, then subtracting the EMA of the EMA of the EMA. This helps to reduce the lag associated with traditional moving averages and makes it more responsive to price changes.
History of TEMA
TEMA was developed by Patrick Mulloy in 1994 and is a variation of the double exponential moving average (DEMA). It was designed to reduce the lag associated with traditional moving averages and to be more responsive to price changes. TEMA is a popular indicator among technical traders and is used to identify trends and smooth out price action.
Comparison Table
| Indicator | Lag | Responsiveness |
|---|---|---|
| Simple Moving Average (SMA) | High | Low |
| Exponential Moving Average (EMA) | Medium | Medium |
| Triple Exponential Moving Average (TEMA) | Low | High |
Summary
The Triple Exponential Moving Average (TEMA) is a technical analysis indicator used to identify trends and smooth out price action. It is a type of moving average that is more responsive to price changes than a simple moving average (SMA) and less prone to whipsaws than an exponential moving average (EMA). TEMA was developed by Patrick Mulloy in 1994 and is a variation of the double exponential moving average (DEMA). For more information about TEMA, you can visit Investopedia, TradingView, and StockCharts.
See Also
- Simple Moving Average (SMA)
- Exponential Moving Average (EMA)
- Double Exponential Moving Average (DEMA)
- Weighted Moving Average (WMA)
- Hull Moving Average (HMA)
- Kaufman Adaptive Moving Average (KAMA)
- Zero-Lag Exponential Moving Average (ZLEMA)
- Volume Weighted Moving Average (VWMA)
- Adaptive Moving Average (AMA)
- Smoothed Moving Average (SMMA)
