TEMA (Triple Exponential Moving Average)

The Triple Exponential Moving Average (TEMA), also developed by Patrick Mulloy, takes the DEMA concept one step further by adding a third level of exponential smoothing. The result is a moving average with even less lag while maintaining reasonable smoothness.

EMA1 = EMA(Close, N)
EMA2 = EMA(EMA1, N)
EMA3 = EMA(EMA2, N)
TEMA(N) = 3 × EMA1 - 3 × EMA2 + EMA3

• Minimum lag among standard moving averages (SMA > EMA > DEMA > TEMA).
• Triple smoothing — still reduces noise despite the speed.
• Early signals — captures trend reversals faster, but may produce more false signals in ranging markets.

Trend direction

• Price above TEMA — strong uptrend.
• Price below TEMA — strong downtrend.

Crossovers

• TEMA of short period crossing above TEMA of long period — bullish.
• Price crossing above TEMA — potential trend reversal up.

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Lookback length for all three EMA layers |

| Condition | Meaning | |-----------|---------| | close > TEMA(20) | Price above the fast TEMA | | TEMA(10) cross_over TEMA(30) | Fast TEMA crosses above slow — bullish | | TEMA(20) > TEMA(50) | Short-term momentum exceeds long-term — uptrend |

| Scenario | Recommendation | |----------|---------------| | Crypto scalping (1m-5m) | TEMA is ideal — fastest signal detection | | Intraday trading (15m-1h) | TEMA or DEMA — both work well | | Swing trading (4h-1D) | EMA preferred — TEMA too sensitive | | Position trading (1W+) | SMA or EMA — TEMA adds no benefit |

TEMA Ribbon

Use 3 TEMAs (8, 13, 21) as a ribbon:

• All three aligned (8 > 13 > 21) — strong uptrend, enter long
• All three inverted (8 < 13 < 21) — strong downtrend, enter short
• Ribbon tangled — consolidation, stay out

Trend + Momentum Combo

• Enter when TEMA(10) cross_over TEMA(30) AND ADX > 25
• Exit when TEMA(10) cross_under TEMA(30) OR trailing stop hit

• TEMA is ideal for scalping and short-term intraday strategies.
• On longer timeframes, the difference between TEMA and EMA shrinks — DEMA or EMA may suffice.
• Combine TEMA with ADX: if ADX > 25, trust TEMA signals; if ADX < 20, avoid crossover trades.
• Watch for TEMA "flattening" — when the slope approaches zero, the trend may be exhausting.