Triple Exponential Moving Average - TEMA

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DEFINITION of 'Triple Exponential Moving Average - TEMA '

A technical indicator used for smoothing price and other data. It is a composite of a single exponential moving average, a double exponential moving average and a triple exponential moving average. Developed by Patrick Mulloy, the TEMA was first published in 1994.

BREAKING DOWN 'Triple Exponential Moving Average - TEMA '

The TEMA smooths price fluctuations and filters out volatility, thereby making it easier to identify trends with little lag. It is a useful tool in identifying strong, long lasting trends, but may be of limited use in range-bound markets with short term fluctuations.

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RELATED FAQS
  1. Why is the Triple Exponential Moving Average (TEMA) important for traders and analysts?

    The triple exponential moving average (TEMA) is important for traders and analysts because it is useful as a trend indicator. ... Read Full Answer >>
  2. What are the differences between a Triple Exponential Moving Average (TEMA) and a ...

    Although they sound similar, the triple exponential moving average (TEMA) and the triple exponential average (TRIX) are actually ... Read Full Answer >>
  3. What are the best technical indicators to complement the Triple Exponential Moving ...

    Some of the best technical indicators traders use to complement the triple exponential moving average (TEMA) are the average ... Read Full Answer >>
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    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  5. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
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