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?

    Learn how the triple exponential moving average is calculated and the indications it provides that are most helpful to traders ... Read Answer >>
  2. What are the differences between a Triple Exponential Moving Average (TEMA) and a ...

    Understand the fundamental differences between the triple exponential moving average indicator and the triple exponential ... Read Answer >>
  3. What are the best technical indicators to complement the Triple Exponential Moving ...

    Learn about some of the best technical indicators that can be used to complement trading with the triple exponential moving ... Read Answer >>
  4. Why is the Exponential Moving Average (EMA) important for traders and analysts?

    Discover why chartists and technical analysts might use an exponential moving average (EMA) instead of a simple moving average ... Read Answer >>
  5. What are the main drawbacks of a Double Exponential Moving Average -DEMA?

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  6. What is the difference between Exponential Moving Average (EMA) and Weighted Moving ...

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