Triple Exponential Moving Average (TEMA) Bitcoin Trading Analysis and TEMA Bitcoin Trading Signals

Developed by Patrick Mulloy.

This btcusd indicator was originally used for technical analysis in the Stock exchange and Commodities cryptocurrency market before being used in cryptocurrency trading technical analysis.

This a bitcoin trend following indicator, it was intended to lessen the lag of the original exponential moving average.

The calculation is based on three EMAs:

• a single EMA
• a double Exponential Moving Average and
• a triple EMA

The three EMAs when combined produce a lesser amount of lag than any of the three EMAs.

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

The TEMA Bitcoin technical indicator can be traded in the same way as the original moving averages

The most popular technical analysis method of generating trading signals is to compare the moving average line and the cryptocurrency price action.

• A buy cryptocurrency signal is generated when both the btcusd price and the indicator are moving upwards while
• A sell cryptocurrency signal is generated when the btcusd price and the indicator are both moving downwards.

Buy Sell Bitcoin Trading Signal

Crossover System

Another popular technical analysis method of TEMA is the crossover system.

The TEMA crossover system includes two or more triple exponential moving averages crossing above/below each other to generate cryptocurrency trading signals. One indicator has fewer periods than the other. This system will also include combining it with other indicators as additional entry confirmation signals

Crossover System