Indicator - TEMA

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Definition TEMA



We start to calculate MME1, a (n day) exponential moving average of the closing prices.
Then we calculte MME2, that's the exponential moving average of MME1 with the same period.
Finally we calculate MME3, the moving average of MME2, always with the same period.
The indicator TEMA = 2 * MME2 - MME3
We calculate three exponential moving average. p a parameter
TEMA=3*(ma1-ma2)+ma3 with mm1 the exponential moving average of close with parameter p
ma2=exponential moving average of ma1 with parameter p.
ma3=exponential moving average of mm2

Interpretation TEMA



This indicator is faster and more smoothed than a standard moving average. Tema can be used with other indicators (MACD, stochastic oscillator).

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