TEMA



TEMA Interpretation:

This indicator is faster and more smoothed than a standard moving average. TEMA can be used with other indicators such as MACD or Stochastic Oscillator. TEMA Calculation:

To start with lets calculate MME1, a (n day) exponential moving average of the closing price. Then we calculate MME2, that's the exponential moving average of MME1 with the same period. Finally we calculate MME3, the moving average of MM", always with the same period.

The indicator TEMA = 2* MME2 - MME3 We calculate three exponential moving averages. p a parameter TEMA=3*(ma1-ma2)+ma3 with mm1 the exponential moving average of close with parameter p. ma2=exponential exponential moving average of close with parameter p. ma2=exponential moving average of ma1 with parameter p. ma3=exponential moving average of mm2




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