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.

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.

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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 >>
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    Although they sound similar, the triple exponential moving average (TEMA) and the triple exponential average (TRIX) are actually ... Read Full Answer >>
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    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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