Intro
TEMA (Triple Exponential Moving Average) is designed to do one thing:
reduce lag and react faster to price
It gives you a smoother trend line while staying responsive to market moves.
What is TEMA
TEMA is an advanced moving average that applies multiple layers of smoothing.
Compared to a standard EMA:
- reacts faster
- reduces delay
- tracks price more closely
How TEMA Works
TEMA uses three layers of EMA:
- EMA of price
- EMA of that EMA
- EMA of that again
Combined into one line:
TEMA = (3 × EMA1) − (3 × EMA2) + EMA3
This removes lag while keeping the trend clean.
How to Add TEMA on TradingView
- Open your chart
- Click Indicators
- Search TEMA
- Add it to your chart
You can adjust:
- length
- price source
How to Use TEMA
Trend Direction
- Price above TEMA → bullish
- Price below TEMA → bearish
Crossover Setup
Use with another moving average.
- Short TEMA crosses above → long
- Short TEMA crosses below → short
Dynamic Support / Resistance
In trends:
- price often pulls back to TEMA
- then continues
Recommended Settings
- Short-term → 9
- Balanced → 20
- Longer-term → 50
Simple Strategy
Use TEMA with RSI.
Long
- Price above TEMA
- RSI above 50
Short
- Price below TEMA
- RSI below 50
Risk Management
- Use stop below/above structure
- Aim for 1:1.5 or 1:2
- Avoid overtrading
Pros
- Faster than EMA
- Cleaner trend signals
- Good for momentum trading
Cons
- Sensitive in chop
- Can give false signals
- Works best in trends
Key Rules
- Trade with trend
- Avoid sideways markets
- Combine with confirmation
Final Thoughts
TEMA is not a standalone system.
It’s a tool to improve timing.
Used correctly, it helps you:
- react faster
- stay aligned with trend
- refine entries
Bottom Line
Faster signals don’t mean better trades—
confirmation still matters.
Thanks for sharing this insightful information!!