TEMA is short for Triple Exponential Moving Average. The TEMA Band Metatrader 5 forex indicator shares a lot of similarities with the very popular Bollinger Bands indicator.
It differs mainly due to its dependence on the Triple Exponential Moving Average (TEMA).
The TEMA Band Metatrader 5 forex indicator is more symmetric i.e. the middle line is closer to price action, while the upper/lower bands are evenly placed, when compared with Bollinger Bands.
When the outer bands of the TEMA Band Metatrader 5 forex indicator gets farther away from the middle line, a possible reversal signal is underway.
The EUR/CAD H4 chart below displays the TEMA Band Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the bands of the TEMA Band Metatrader 5 forex indicator widens following a contraction, while the middle line along with the bands are seen to be in ascension.
Sell Signal: Go short when the bands of the TEMA Band Metatrader 5 forex indicator widens following a contraction, while the middle line, along with the bands are seen to be in dissension.
Exit buy trade: Close all buy orders if while a bullish trend if ongoing, the TEMA Band MT5 forex indicator is seen to be tightening.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the TEMA Band MT5 forex indicator is seen to be tightening.
Tips: Certainly, trading the TEMA Band Metarader 5 forex indicator in isolation is warned against, but if well combined with other technical tools, it does pretty well in giving all kind of currency traders insights into market volatility.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (EMA period, Indicator’s shift, ExtBandsDeviations), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the temab.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)