Patrick Mulloy created the Triple Exponential Moving Average, or TEMA, in 1994 as a technical tool that sieves out volatility from traditional moving averages.
In line with its name, the Triple Exponential Moving Average is actually made up of a single EMA, a double EMA and a triple EMA.
Basically, the indicator smoothens out noise from price actions, while also filtering out volatility, thus enabling the Triple Exponential Moving Average easily spot trends without the usual lag associated with moving averages.
The indicator appears as a basic dual colored (red & green) line and just like any other moving average, a trigger is setoff when price breaks above/below the average.
The GBP/USD M30 chart below displays the Triple Exponential Moving Average Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending line of the Triple Exponential Moving Average Metatrader 4 forex indicator turns red.
Sell Signal: Go short when the descending line of the Triple Exponential Moving Average Metatrader 4 forex indicator changes to green.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the Triple Exponential Moving Average indicator line color reverts to green.
Exit sell trade: Close all sell orders if while a bearish trend is running, the Triple Exponential Moving Average indicator line changes to red.
Tips: The Triple Exponential Moving Average indicator is used by many traders to spot long-lasting and strong trends, but it is of limited use when the market is range-bound.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Apply_To_Price, TeMA_Method, TeMA_FirstPeriod, TeMA_SecondPeriod, TeMA_ThirdPeriod, TeMA_SmoothingPeriod), 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 triple-exponential-moving-average.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)