HTS's Triple Exponential Moving Average (TEMA) indicator smooths price fluctuations and filters out volatility in an attempt to make trend identification easier and with as little lag as possible. TEMA is a useful tool for identifying strong and long-lasting trends.
TEMA is an indicator with the following formula:
TEMA = (3*EMA – 3*EMA(EMA)) + EMA(EMA(EMA))
- EMA = EMA(1) + α * (Close – EMA(1))
- α = 2 / (N + 1)
- N = The smoothing period.
- Exchange Website, of which you would like to monitor (Pro Tip: It doesn't have to be the same exchange you are currently trading on)
- Currency Pair, of which you would like to monitor for trade signals.
- Update Speed
- Trade Signals
- Short TEMA Length
- Long TEMA Length
- Minimum Swing - Use this value to omit trade signals. By default this is 0.01. If you are unsure, run backtests with a value of 0 and a value of 2 to see how this works.
This Indicator is great in periods of volatility as it does not lag as much as EMA or SMA.