science

Triple exponential moving average

Triple exponential moving average is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Triple exponential moving average rather than just read about it. In short: The Triple Exponential Moving Average (TEMA) is a technical indicator in technical analysis that attempts to remove the inherent lag associated with moving averages by placing more weight on recent values. The name suggests this is achieved by applying a triple exponential smoothing which is not the case.

Key takeaways

Triple exponential moving average belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Triple exponential moving average to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Triple exponential moving average from memory before moving on to harder problems.

Reference excerpt

The Triple Exponential Moving Average (TEMA) is a technical indicator in technical analysis that attempts to remove the inherent lag associated with moving averages by placing more weight on recent values. The name suggests this is achieved by applying a triple exponential smoothing which is not the case. The name triple comes from the fact that the value of an EMA (Exponential Moving Average) is triple.

History The indicator was introduced in January 1994 by Patrick G. Mulloy, in an article in the Technical Analysis of Stocks & Commodities magazine: "Smoothing Data with Faster Moving Averages" The same article also introduced another EMA related indicator: Double exponential moving average (DEMA).

Formula To keep it in line with the actual data and to remove the lag the value "EMA of EMA" is subtracted 3 times from the previously tripled ema. Finally "EMA of EMA of EMA" is added. The formula is:

TEMA = 3 × EMA − 3 × EMA ( EMA ) + EMA ( EMA ( EMA ) ) {\displaystyle {\textit {TEMA}}=3\times {\textit {EMA}}-3\times {\textit {EMA}}({\textit {EMA}})+{\textit {EMA}}({\textit {EMA}}({\textit {EMA}}))}

Because EMA(EMA(EMA)) is used in the calculation, TEMA needs 3 × period - 2 samples to start producing values in contrast to the period samples needed by a regular EMA.

References

Worked examples

Example 1 — a first encounter with Triple exponential moving average

Start with the simplest possible case. Write down what Triple exponential moving average claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Triple exponential moving average before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Triple exponential moving average ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Triple exponential moving average

In research: Triple exponential moving average appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Triple exponential moving average in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Triple exponential moving average is common in secondary-school and first-year university syllabi. It links to neighbouring topics Technical indicators, so understanding it makes those chapters shorter.
In everyday life: Look for Triple exponential moving average outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Triple exponential moving average in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Triple exponential moving average means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Triple exponential moving average out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Triple exponential moving average in simple terms?

Why does Triple exponential moving average matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Triple exponential moving average?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Triple exponential moving average.