Q: 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

Question 1

What is TEMA?

Accepted Answer

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.

Question 2

How it works

Accepted Answer

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

Question 3

Key features

Accepted Answer

- **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.

Question 4

Trend direction

Accepted Answer

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

Question 5

Crossovers

Accepted Answer

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

Question 6

Parameters

Accepted Answer

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

Question 7

Example conditions

Accepted Answer

| 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 |

Question 8

When to Use TEMA

Accepted Answer

| 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 |

Question 9

TEMA Ribbon

Accepted Answer

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

Question 10

Trend + Momentum Combo

Accepted Answer

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

Question 11

Tips

Accepted Answer

- 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.