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. Trading Strategies

    Use The Momentum Strategy To Your Advantage

  2. Active Trading

    An Introduction To The Relative Strength ...

  3. Active Trading Fundamentals

    Weighted Moving Averages: The Basics

  4. Active Trading

    Advantages of TRIX - Triple Exponential ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center