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Technical Indicators

Thu, Jun 5th, 2025
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The descriptions, formulas, and parameters shown below apply to both Interactive Charts and Snapshot Charts, unless noted. Please note that some of the parameters may be slightly different between the two versions of charts.
Studies noted with * are available only in Snapshot Charts and those noted with ^ are available only in Interactive Charts.
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Moving Average Exponential TEMA

Indicator Type: Overlay - Interactive Charts Only

The triple exponential moving average was designed to smooth price fluctuations, thereby making it easier to identify trends without the lag associated with traditional moving averages (MA). It does this by taking multiple exponential moving averages (EMA) of the original EMA and subtracting out some of the lag.

The TEMA is used like other MAs. It can help identify trend direction, signal potential short-term trend changes or pullbacks, and provide support or resistance. The TEMA can be compared with the double exponential moving average (DEMA).

  • The triple exponential moving average (TEMA) is one that responds more quickly to near-term price changes than a normal exponential moving average (EMA).
  • When the price is above TEMA it helps confirm an uptrend; when the price is below TEMA it helps confirm a downtrend.
  • When the price crosses down through TEMA that could indicate the price is pulling back or reversing to the downside. When the price moves above TEMA, a price rally could be starting.

The TEMA reacts to price changes quicker than a traditional MA or EMA will. This is because some of the lag has been subtracted out in the calculation.

A TEMA can be used in the same ways as other types of moving averages. Mainly, the direction TEMA is angled indicates the short-term (averaged) price direction. When the line is sloping up, that means the price is moving up. When it is angled down, the price is moving down. There is still a small amount of lag in the indicator, so when prices change quickly the indicator may not change its angle immediately. Also, the larger the lookback period, the slower the TEMA will be in changing its angle when price changes direction.

Calculation:

Triple Exponential Moving Average (TEMA) = (3 x (EMA(1) - 3 x EMA(2)) + EMA(3)
where: EMA(1) = Exponential Moving Average (EMA)
EMA(2) = EMA of EMA(1)
EMA(3) = EMA of EMA(2)

  1. Choose a lookback period. This is how many periods will be factored into the first EMA. With a fewer number of periods, like 10, the EMA will track price closely and highlight short-term trends. With a larger lookback period, like 100, the EMA will not track price as closely and will highlight the longer-term trend.
  2. Calculate the EMA for the lookback period. This is EMA(1).
  3. Calculate the EMA of EMA(1), using the same lookback period. For example, if using 15 periods for EMA(1), use 15 in this step as well. This is EMA(2).
  4. Calculate the EMA of EMA(2), using the same lookback period as before.
  5. Plug EMA(1), EMA(2), and EMA(3) into the TEMA formula to calculate the triple exponential moving average.

(Source: www.investopedia.com)

Default Parameters:

  • Period (15) - the number of bars, or period, used to calculate the study
  • Source (Close) - valid options are Open, High, Low, Close, HL/2, HLC/3, OHLC/4, HLCC/4
  • Offset (0) -  the number of bars to displace the moving average

Sample Chart:

Triple EMA
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