📊 TECHNICAL
Triple Exponential Moving Average (TEMA)
A fast-reacting average introduced by Patrick Mulloy in 1994 that combines three cascaded EMAs to strip out much of the lag found in single and double EMAs.
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Live Demo — Triple Exponential Moving Average (TEMA) applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is TEMA?
Introduced by Patrick Mulloy in a 1994 Stocks & Commodities article. It applies EMA smoothing three times and recombines the results algebraically to cancel out most of the lag a plain EMA carries.
Formula
EMA1 = EMA(Price, n)
EMA2 = EMA(EMA1, n)
EMA3 = EMA(EMA2, n)
TEMA = 3*EMA1 - 3*EMA2 + EMA3Parameters
| Parameter | Default | Description |
|---|---|---|
| Period (n) | 20 | EMA length applied at each smoothing pass |
| Source | Close | Price field used |
Signal Interpretation
- Price crossing TEMA is a faster, lower-lag alternative to an EMA crossover.
- Slope reversals act as early trend-change alerts.
- Two TEMAs of different lengths crossing generate directional signals.
- Lag is minimized, not eliminated — can overshoot briefly on sharp reversals.
Tips & Best Practices
- More responsive than DEMA/EMA of the same length, but prone to whipsaws — pair with a filter.
- Works well as the fast line in a crossover system with a slower SMA/EMA as anchor.
- Avoid very short periods on noisy intraday data.