TEMA Indicator
Platform: MT4 Type: Trend Last update: December 1, 2024The TEMA Indicator for MT4 involves triple moving averages and aims to be the improved version that reduces lagging issues. Despite the tricky name, it displays just a single line on activity chart.
Example chart:
How is this tema indicator for mt4 better?
The tema provides more responsive readings and acts faster to price fluctuactions. It offers a good balance between smoothness and higer-sensitivity and in order to achieve that, it combines several instances of emas.
When it comes to the provided trend-following and reversal signals, the approach applied here is similar to typical moving average indicators. Traders should pay attention to slope of the line and location of price candlesticks. The best signals occur when it’s very steep in given direction and bars are clearly above or below it.
Multiple instances on the single chart
It’s a good idea to utilize multiple instances of tema on the same chart. It allows to understand overall trend better and filter some of the fake signals. Take a look at this example below with 14 and 100 periods.
When both temas are in clear trend and good angle and price drops – it’s a pullback and great entry point assuming the trend resumes. You can spot these setups above.
The formula behind tema
The calculations are based on the following formula:
TEMA = (3 X EMA1) – (3 X EMA2) + (EMA3)
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