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Triple Exponential Moving Average (TEMA)

Trading Term

A technical indicator used for smoothing price and other data. It is a composite of a single exponential moving average, a double exponential moving average and a triple exponential moving average. The TEMA smooths price fluctuations and filters out volatility, thereby making it easier to identify trends with little lag. It is a useful tool in identifying strong, long lasting trends, but may be of limited use in range-bound markets with short term fluctuations.

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