Tripple exponential moving average (TEMA) is similar to a double exponential moving average (DEMA), with the difference that a TEMA is calculated using three EMAs. One for the price data and two for the smoothed data. The first EMA is calculated using the same formula as a regular EMA, with the most recent price being given the highest weight. The second and third EMAs are then calculated using the same formula, with the first EMA serving as the price data. The TEMA is then calculated by subtracting the third EMA from the sum of the first and second EMAs. This creates a line on the chart that is even more responsive to price changes than a DEMA but also filters out even more noise and volatility in the market.
