A technical indicator used for smoothing price data. It is a composite of a Single Exponential Moving Average, a Double Exponential Moving Average, and a Triple Exponential Moving Average. The TEMA smooths price fluctuations and filters out volatility, thereby making it a tool 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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Formula:
Where EMA is Exponential Moving Average
TEMA = (3 * EMA) - (3 * EMA of EMA) + (EMA of EMA of EMA)
FutureSource Workstation expression equivalent to TEMA on a chart for symbol 'CL 1!'
=EMA ('CL 1!', 30) * 3 - EMA (EMA ('CL 1!', 30), 30) * 3 + EMA (EMA (EMA ('CL 1!', 30), 30), 30)
Properties
Input: The Symbol field on which the study will be calculated.
Input Field: The Symbol field on which the study will be calculated. Input Field is set to "Default", which, when viewing a chart for a specific symbol, is the same as "Close".
Period: The number of bars in a chart used in EMA calculations. If the chart displays daily data, then period denotes days; in weekly charts, the period will stand for weeks, and so on. The application uses a default of 30.
Plot: The color, line style and line width of the TEMA plot.