Overlap studies

Triple Exponential Moving Average

Low-lag moving average combining three exponential-smoothing stages.

Engine
TA-Lib
Function
TEMA
Input series
close
Outputs
1

How it works

TEMA combines the first, second, and third sequential EMAs as 3*EMA1 - 3*EMA2 + EMA3 to reduce lag while preserving a single moving-average output.

Use case

Use TEMA as a responsive trend feature for smoothing, crossovers, and earlier directional-change detection than conventional moving averages.

Parameters

ParameterTypeDefaultBounds or optionsDescription
Time Periodinteger301…100000Period used by each sequential EMA stage in the TEMA calculation.

Outputs

OutputTypeDescription
TEMAnumberTriple Exponential Moving Average value for the bar.

Reading the result

TEMA combines multiple exponential smoothing stages to reduce lag relative to a conventional EMA while preserving a smooth price-level output. It is not simply an EMA run three times; the combined expression compensates for part of the smoothing delay.

The additional state and longer initialization history can make early comparisons sensitive to dataset boundaries.

Common mistakes

  1. Assuming the output is always smoother than an EMA of the same period.
  2. Expecting reduced lag without increased sensitivity to recent movement.
  3. Comparing short datasets before the recursive history stabilizes.
  4. Confusing TEMA with the separately named T3 moving-average type.

DataCat workflow notes

When evaluating TEMA against EMA or DEMA, compare reaction, noise, and downstream value on the same final provider rows. Do not select it only because it appears more advanced.

Resources

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