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WINNER "Favorite Article" in the S&C Readers' Choice Award 2010 and 2011 and finalist in 2012. Thank You!
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Sylvain Vervoort
WINNER 2010 and 2011 favorite article Readers' Choice Award.
AXIOM Business Books Awards, bronze medal.
Tema, Triple Exponential Moving Average was first introduced in Stocks & Commodities magazine February 1994 by Patrick Mulloy. Price is passed multiple times through the same filter and than combined. TEMA = 3*EMA – 3*EMA(EMA) + EMA(EMA(EMA)). If you are looking for a good smoothing, but still fast reacting average on longer time periods, then the TEMA average is for you.
Heikin ashi, Japanese for “average bar”, is a technique using a special kind of candle stick bars for better visualizing price trends. This technique has been introduced by Dan Valcu in the February 2004 issue of Stocks & Commodities magazine.
I calculate the average heikin ashi closing price as the result of:
(xClose+xOpen+xHigh+xLow)/4, the re-calculated heikin ashi prices.
We will mainly use this re-calculated closing price as a smoothed closing price introducing almost no delay in other formulas.
Tema, Triple Exponential Moving Average was first introduced in Stocks & Commodities magazine February 1994 by Patrick Mulloy. Price is passed multiple times through the same filter and than combined. TEMA = 3*EMA – 3*EMA(EMA) + EMA(EMA(EMA)). If you are looking for a better smoothing, but still with little lag using longer time periods, then the TEMA average on the heikin ashi price is for you.
You can use a heikin ashi TEMA average smoothed value with a zero-laging technique, crossing with a TEMA zero-lagging average typical price, to create fast reliable crossings.