The following formula is for plotting a 10-period tema moving average:

(3*Mov(C,10,E)-(3*Mov(Mov(C,10,E),10,E))+(Mov(Mov(Mov

(C,10,E),10,E),10,E)))

How does one derive this formula?

Looking at the derivation of a Zero Lag EMA, I have proceeded as follows but I don't get the above formula. I know I'm wrong somewhere.

EMA1:=mov(C,10,E);

EMA2:=mov(EMA1,10,E);

EMA3:=mov(EMA2,10,E);

Difference1:=EMA1-EMA2;

Difference2:=EMA2-EMA3;

Teema{Tema}:=EMA1+Difference1+Difference2;

Please correct me.

Thanks

Arun

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Arun,

A tema is simply a triple smoothed EMA. It would simply be

(Mov(Mov(Mov(C,10,E),10,E),10,E)))

A DEMA is simply a double smoothed EMA or

Mov(Mov(C,10,E),10,E)

Your formula is 3 times an EMA - 3 times a DEMA which could be

simplified to the difference of an EMA-DEMA plus a TEMA

Hope this helps,

Preston

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Arun,

Finally had some time to put together some information for you on the indicator that you requested.

Important to remember that the TEMA and the DEMA were both developed by Patrick Mulloy. They both use unique methods to determine their final values. I believe the following information explains everything.

DEMA and TEMA are unique smoothing indicators developed by Patrick Mulloy. TEMA was originally introduced in the January 1994 issue of Technical Analysis of Stocks & Commodities magazine. As Mr. Mulloy explains in the article:

"Moving averages have a detrimental lag time that increases as the moving average length increases. The solution is a modified version of exponential smoothing with less lag time." TEMA is an acronym that stands for Triple Exponential Moving Average. HOWEVER, the name of this smoothing technique is a bit misleading in that it is not simply a moving average of a moving average of a moving average. It is a unique composite of a single exponential moving average, a double exponential moving average, and a triple exponential moving average that provides less lag than either of the three components individually.