Triple Exponential Moving Average - TEMA

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Triple Exponential Average - TRIX

    A momentum indicator used by technical traders that shows the ...
  2. Double Exponential Moving Average ...

    A technical indicator developed by Patrick Mulloy that first ...
  3. Exponential Moving Average - EMA

    A type of moving average that is similar to a simple moving average, ...
  4. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  5. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  6. Oscillator

    A technical analysis tool that is banded between two extreme ...
Related Articles
  1. Use The Momentum Strategy To Your Advantage
    Trading Strategies

    Use The Momentum Strategy To Your Advantage

  2. An Introduction To The Relative Strength ...
    Active Trading

    An Introduction To The Relative Strength ...

  3. Weighted Moving Averages: The Basics
    Active Trading Fundamentals

    Weighted Moving Averages: The Basics

  4. Advantages of TRIX - Triple Exponential ...
    Active Trading

    Advantages of TRIX - Triple Exponential ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center