|
Wednesday, 21 October 2009 08:24 |
|
This page contains the formula for TEMA and you can download the formula in Excel spreadsheet.
Triple Exponential moving Average (TEMA)
TEMA is a smoothing indicator developed by Patrick Mulloy, and it was introduced in February 1994. As Patrick Mulloy said:
"Moving averages have a detreimental lag time that increases as the moving average length increases. The solution is a modified version of exponential smoothing with less lag time."
TEMA is a unique combination of a single exponential moving average that provides less lag time. It can be used to smooth traditional moving average, price data and other indicators.
It is a composite of a single exponential MA, a double exponential MA, and a triple exponential MA that produces less lag than any of its three components individually; it is NOT a moving average of a moving average of a moving average.
Login or Register to download this Excel Spreadsheet
|
