Triple Exponential Moving Average (TEMA) is an Indicator that traders used to identify a market trends.

 

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TEMA is an abbreviation that is used to describe Triple Moving Average. It was developed by Patrick Mulloy and launched in the year 1994 as the first moving average to solve the problem of technical analysis that traders often face.

Patrick Mulloy noticed that by developing a simple unique composite of triple exponential moving average, simple exponential moving average, and double exponential moving average, it can help tradrrs to minimize the amount of lag that is between price action and the Indicator.

This imolies that with triple exponential moving average  traders can filter out volatility and minimizes the effect of fluctuations in price that is associated with moving average.

The main aim of Triple Exponential Moving Average is to minimizes the lag between price action and traditional Exponential Moving Average (EMAs), making it more useful and more recommendable for short term trading.

As soon as  Patrick Mullou developed the  Double Exponential Moving Average (DEMA) he didn't stop, but rather he took a bold step that lead to the creation of Exponential Moving Average (TEMA).

Triple Exponential Moving Average can help you to identify trends in a market and take care of price fluctuations,so you cane be able to identify the level of support and resistance.

To be continued........

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