--- title: "Triple Exponential Moving Average" description: "Patrick Mulloy's TEMA combines one, two and three successive exponential averages to cancel much of the lag of an EMA. It is not the same as TRIX, which is..." canonical: https://www.getswoopr.com/indicators/trend/triple-exponential-moving-average/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > Patrick Mulloy's TEMA combines one, two and three successive exponential averages to cancel much of the lag of an EMA. It is not the same as TRIX, which is a rate of change of a triple-smoothed EMA. Price above a rising TEMA is read as an uptrend, and below a falling TEMA as a downtrend. # Triple Exponential Moving Average: Formula, Meaning, Signals, Examples and How to Use It ## How Is Triple Exponential Moving Average Calculated? Patrick Mulloy's TEMA combines one, two and three successive exponential averages to cancel much of the lag of an EMA. It is not the same as TRIX, which is a rate of change of a triple-smoothed EMA. **Formula:** `TEMA = 3 * EMA1 - 3 * EMA2 + EMA3, where EMA2 = EMA(EMA1) and EMA3 = EMA(EMA2), all with period n` **Inputs:** - Prices - Period n used for all three EMAs **Worked example.** With EMA values of 101.5, 100.8 and 100.2 at the three smoothing levels, the TEMA is 102.30. The inputs are illustrative numbers, not market data. **Reading it.** Price above a rising TEMA is read as an uptrend, and below a falling TEMA as a downtrend. It follows price more closely than an EMA of the same length, so it turns earlier. **Limits.** Less lag leads to overshoot and more false signals in sideways markets. It needs a longer warm-up than a single EMA. ## What is Triple Exponential Moving Average? Patrick Mulloy's TEMA combines one, two and three successive exponential averages to cancel much of the lag of an EMA. It is not the same as TRIX, which is a rate of change of a triple-smoothed EMA. ## How to use Triple Exponential Moving Average Price above a rising TEMA is read as an uptrend, and below a falling TEMA as a downtrend. It follows price more closely than an EMA of the same length, so it turns earlier. A reading alone is never a buy or sell signal; it needs context from price structure, volume, volatility and the broader market regime. ## Strengths - Combining three EMA levels with weights 3, -3 and 1 offsets more of the smoothing delay than DEMA's two levels do. - All three levels share the same period, so a single parameter n controls the whole construction. - Reproducible when the formula and data convention are fixed. ## Weaknesses and limitations - The mix of positive and negative terms amplifies recent price changes, so noise in the last few bars gets magnified. - For the same period n it gives a very different line from a single EMA, so settings carried over from an EMA do not transfer. - Correlated indicators can create false confidence by repeating the same underlying information. ## Editorial and risk note This page is educational content, not individualized investment advice. It should not imply guaranteed prediction, accuracy or outperformance. ## Frequently Asked Questions Is Triple Exponential Moving Average a buy or sell signal? No. Price above a rising TEMA is read as an uptrend, and below a falling TEMA as a downtrend. Less lag leads to overshoot and more false signals in sideways markets. A trade built on it still needs a trigger, an invalidation rule, a position size and realistic execution assumptions. What is the best setting for Triple Exponential Moving Average? Triple Exponential Moving Average takes these inputs: prices; period n used for all three EMAs. There is no universal best setting for the tunable ones, so test them across instruments, regimes and out-of-sample periods and favor stable parameter regions over one historical winner. Can Triple Exponential Moving Average be used by itself? Less lag leads to overshoot and more false signals in sideways markets. It needs a longer warm-up than a single EMA. For that reason it is read next to measures of direction, participation, valuation, liquidity and risk, not alone. Does Triple Exponential Moving Average work on every timeframe? The calculation (TEMA = 3 * EMA1 - 3 * EMA2 + EMA3, where EMA2 = EMA(EMA1) and EMA3 = EMA(EMA2), all with period n) can be run on any bar size, but behavior is not portable: a reading on a five-minute chart describes a very different market window from the same reading on a daily chart. Validate the exact timeframe before relying on it. Why does Triple Exponential Moving Average give false signals? The mix of positive and negative terms amplifies recent price changes, so noise in the last few bars gets magnified. For the same period n it gives a very different line from a single EMA, so settings carried over from an EMA do not transfer. Lag, noise and regime changes add to this, because market participants react to new information after the reading is calculated. How should Triple Exponential Moving Average be backtested? Rebuild Triple Exponential Moving Average from prices using point-in-time data, write the rules before testing, include delisted securities where relevant, model realistic fills and costs, reserve a validation sample and compare with a simpler baseline. S Swoopr Editorial Team The Swoopr Editorial Team produces independent investment education, research, and tools for understanding markets, evaluating opportunities, and managing risk. All content is educational only and does not constitute personalized investment advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).