Turbulent Market Indicator: Triple Exponential Moving Average Channel

type

status

date

slug

summary

AI summary

AI translation

category

password

icon

💡

By registering an account on OKX Crypto Exchange using the invitation link from blackcat1402, you can enjoy several benefits. These include a 10% rebate on spot contract trades, a 20% discount on fees, permanent access to blackcat1402 Membership and Advanced Indicators, free internal testing of the Advanced Trading System, and exclusive services such as member technical indicator customization and development.

💡

OKX Crypto Exchange blackcat1402 invitation registration link:

Welcome Bonus | Register in OKX | Cryptocurrency Bitcoin Registration | 94665706

https://www.okx.com/join/94665706

Hey, everyone! This cat is here today to bring you an interesting and professional article about the "Triple Exponential Moving Average (TEMA) Channel" - a powerful trend indicator in volatile markets. First of all, the TEMA indicator was invented by Patrick Mulloy in the mid-1990s to address the lagging issue encountered when using oscillators or Exponential Moving Averages (EMA). It smooths out short-term fluctuations by using multiple moving averages, and its uniqueness lies in its continuous use of EMA's EMA and adjustment for lag in the formula.

In this article, the main function of the TEMA channel is to serve as a trend indicator, but it is not effective in sideways markets. It is best suited for long-term trend trading. For long-term trends, analysts can more easily filter out and ignore periods of volatility. Combining TEMA with other oscillators or technical indicators can help traders and analysts explain sudden price fluctuations and assess volatility. Some analysts recommend combining Moving Average Convergence Divergence (MACD) with the TEMA channel to evaluate market trends. This script uses TEMA as a channel to showcase interesting features of price support and resistance. The white color represents the upper band, yellow represents the middle band, and magenta represents the lower band. Let's enjoy it together!

"L1 Triple EMA Channel" needs to have the overlay parameter set to true. This means that the indicator will be plotted on top of the price chart.

The variable N is defined as an input integer with a default value of 21 and a label "Period". This allows users to change the value of the period when adding this indicator to their chart.

The variables MAH, MAL, RRANGE, and RANGEMA are calculated by applying exponential moving averages (EMA) multiple times to the high, low, or range values using the specified period (N). These calculations help determine the levels of the upper and lower channels to be plotted.

The variable UPPER represents the upper channel level by adding twice the value of RANGEMA to MAH. It is then plotted using the plot() function, including parameters such as color and line width.

Similarly, the variable LOWER represents the lower channel level by subtracting twice the value of RANGEMA from MAL. It is also plotted using the plot() function with a different color than the UPPER line.

Finally, the variable MID is calculated by taking the average of the UPPER and LOWER channel levels. It is also plotted using the plot() function, but with a different color than the UPPER and LOWER lines.