Purpose of the TEMA
The Triple Exponential Moving Average (TEMA), developed by Patrick Mulloy, combines a single, double and triple exponential moving average. This removes even more lag than the DEMA, so it reacts very quickly to price changes.
How It Works
When you select Triple EMA (TEMA) in the Trade Rule block, you can configure it with the following settings:
Period of TEMA
The number of candles used for the calculation.
Example: A period of 14 uses the last 14 candles.
Shift of TEMA (Advanced Option)
Moves the line forward or backward on the chart by a set number of candles.
Applied Price of TEMA (What the TEMA is calculated from)
Close Price: Uses the candle's closing price.
Open Price: Uses the candle's opening price.
High Price: Uses the highest price in the candle.
Low Price: Uses the lowest price in the candle.
Median Price: (High + Low) ÷ 2
Typical Price: (High + Low + Close) ÷ 3
Weighted Price: (High + Low + Open + Close) ÷ 4
Time Frame of TEMA
Sets the chart time frame for the TEMA calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of TEMA
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of TEMA (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Period: 14
Applied Price: Close
Candle ID: 1
You get the TEMA value of the most recently closed candle, calculated from closing prices.
Use Cases
Use price above or below the TEMA as a very fast trend filter.
Combine a fast TEMA with a slower moving average for crossover signals.
Use it on higher time frames where speed matters more than noise.
Can also be used as a Custom level stop-loss or take-profit, as a pending-order price, and as the Modify SL/TP reference price.
⚠ Tip: The TEMA is very sensitive. Use longer periods or combine it with a slower line to avoid false signals.