StockforProfit, in effect TEMA is the same as EMA and SMA in...

StockforProfit, in effect TEMA is the same as EMA and SMA in its use, just shows direction. The only reason I like it is that it removes some of the effects of large price fluctuations and high volatility. In a word it “smooths” the large fluctuations, and it removes some of the “lag” that other types of moving averages suffer.

Not my words, plagiarised this (Investopedia) but “It does this (smoothing) by taking multiple exponential moving averages (EMA) of the original EMA and subtracting out some of the lag.”

No one measure is perfect, which is why I use the 20/40/70 periods. If 20 dips below 40, I take it as indicating downwards pressure short term, if the 40 dips below the 70, this extends to a medium term direction and so on, and vice versa. If they all run parallel 20 at the top, followed by 40 and 70 at the bottom, I take it as we are extending upwards. I use a combination of 1hr, 30min and sometimes 15 min to look at direction, with the TEMA’s.

Continual crossing and recrossing, as we have seen for a few weeks now, shows lack of direction or sideways trading, hence the channel between $0.365 and $0.295. If we break out of the channel, we may be seeing change in direction.

I also still take note of things like Bollinger bounce, Bollinger sneeze, bounce off the 8 period SMA etc. to indicate change in direction, coupled with MACD, RSI, spreads etc. to pick entries and exits, same as many others.

Just my opinion, not advice.