2 Moving Averages and Golden/Death Crosses
A moving-average crossover occurs when, on plotting two moving averages each based on different degrees of smoothing, the traces of these moving averages cross. It does not predict future direction but shows trends. This indicator uses two moving averages, a slower moving average and a faster moving average. The faster moving average is a short term moving average.
The 2MA Cross indicator provides 2 plotted moving averages of types; EMA, SMA, RMA, WMA and VWMA. This also provides Golden and Death cross plot points and a wide variety of customization options.
Triple Exponential Moving Average (TEMA)
The triple exponential moving average (TEMA) was designed to smooth price fluctuations, thereby making it easier to identify trends without the lag associated with traditional moving averages (MA). It does this by taking multiple exponential moving averages (EMA) of the original EMA and subtracting out some of the lag. The TEMA is used like other MAs. It can help identify trend direction, signal potential short-term trend changes or pullbacks, and provide support or resistance.
The T3 MA incorporates a smoothing technique which allows it to plot curves more gradual than ordinary moving averages and with a smaller lag. Its smoothness is derived from the fact that it is a weighted sum of a single EMA , double EMA , triple EMA and so on. When a trend is formed, the price action will stay above or below the trend during most of its progression and will hardly be touched by any swings. Thus, a confirmed penetration of the T3 MA and the lack of a following reversal often indicates the end of a trend.
The T3 MA generally produces entry signals similar to other moving averages and thus is traded largely in the same manner. Here are several assumptions:
If the price action is above the T3 MA and the indicator is headed upward, then we have a bullish trend and should only enter long trades (advisable for novice/intermediate traders). If the price is below the T3 MA and it is edging lower, then we have a bearish trend and should limit entries to short. Below you can see it visualized in a trading platform.
Right now it's very rough... I will add more information as it progresses.
More information coming soon..
