TEMA Triple EMA Indicator Explained -- with David Moadel
hello friends and welcome to looking at the markets with David Modell today I'm
going to discuss the triple EMA or tema - EMA indicator it's one of the simplest
ones to use out there and before I get started I just want to remind you that I
do offer coaching for trading and investing whether it's indicators or
fundamentals I can help you to put together a trading plan or investing
plan because you definitely need to have a plan otherwise you don't know what
you're doing and you're not likely to succeed at this so you can email me for
the coaching at David Modell at gmail.com let's get into this team a
triple EMA indicator if you're interested in formulas here is the
formula there it is I'm not even going to try to try to break that down and the
good news is you don't need to know every single formula in order to use the
indicator now this indicator tends to have less lag it's less laggy then
typically then regular moving averages it's going to look a lot like a regular
moving average but it's not as you can tell by the long complicated formula
which involves multiple EMA s alright so it looks like a moving average but it's
not and it tends to catch the price action a little bit quicker it's a
little bit less laggy it's good during trending markets not so good during
sideways or choppy markets you're going to get false signals that's the problem
with it and by the way I say it's good that doesn't mean that it's perfect no
indicator is perfect no indicator works 100% of the time all right so you have
to make your own decisions when it comes to these things all right so be aware
you're gonna get false signals with this one that's a big major disadvantage of
the tema or triple EMA indicator but an advantage like I said it's less laggy
sometimes and another advantage is how simple it is you can buy when a
candlestick closes above the line and then you can sell or go
short when a candlestick closes below the line it's really as simple as that
that's your most basic strategy with this unless you want to combine it with
other indicators which is not a terrible idea all right and so here you go here's
Apple the five-minute candlestick chart and there it is it's above the line you
can buy if you want to ride it all the way up and then don't sell or go short
until it goes below and you know goes all the way down here as you can see and
then when it comes back up you can ride it up and so on and so when there's real
movement real volatility you get these you know mountains and valleys then
that's what they call a trending market and it works pretty well you get to
enjoy the ride up and you can avoid going long or staying long during these
rides down or you can even you can even go short and enjoy the ride down ok
the problem is when it starts to go like over here it's sideways and then you're
in you're out you're confused as to you know is it closing above is it closing
below it's right on top of the line it's problematic here it did close above so
you might buy and then closed below so you sell and then you buy and then you
sell and you're using up a lot of commissions and fees here and you're not
really making a whole lot of money here you're probably even losing money with
this sideways action ok or even over here I mean it's it's below and then
it's above and it's below all right so be aware of that and you might not want
to use this by itself you can but you know you might want to use something
else to try to help you to you not get chopped up by the sideways action so
much all right so I hope this was helpful to you it's a very simple
indicator I got this off of trading view dot-com they have this indicator on
there and so you might want to check it out try it out with demo trading or
virtual or paper trading first is a really good idea before you you know
make sure that it works for you before you commit any real
Capital to it alright so if you like this video hey please give it a thumbs
up on YouTube let me know that you appreciate these videos and leave a
comment what do you think of this indicator do you like it have you tried
it and give it a shot maybe with some demo trading it let me know what you
think and then have you subscribed to my channel yet if you haven't want to do
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and feel free to check out my playlist of technical indicator videos I got a
whole playlist full of them lots and lots of videos for you to check out and
then come to me for the coaching through email David Modell at gmail.com if you
want more personalized help alright thanks a lot I really appreciate it and
I'll talk to you again soon