MACD TEMA - MetaTrader 5 Script | Scalping EA Download - MT4/MT5 Resources

In an article called "Smoothing Data With Less Lag", Patrick Mulloy decided to use TEMA (Triple Exponential Moving Average) instead of EMA as a continuation of his research on the MACD signal with less lag.

Patrick Mulloy : In standard moving average smoothing used in technical analysis, two opposite properties are always at play, increasing the moving average (MA) length to smooth out more random fluctuations, but doing so increases the lag between the MA and the data. In my first article, I discussed the industry standard, Simple Moving Average (SMA, which is a direct moving average of the data) and the more responsive exponential moving average (EMA). Both SMA and EMA smoothing indicators have the same lag in the long steady state, namely:

Where a = 2/(w+1), w is the moving average period. In terms of MA period w, the lag is:

A new exponential moving average called DEMA was introduced in the previous article and it eliminates this lag in steady state. Now, these are two more moving averages. One is known as TEMA, which is an extension of the multiple smoothing technique using single, double and triple EMAs.

MACD TEMA is even better than MACD TEMA and therefore, depending on the parameters, in scalping mode (short calculation period) or trend mode (when longer periods are used). Never forget that MACD is primarily a momentum indicator, and it is the primary target of MACD.

Attachment download

📎 macd_tema.mq5 (11.33 KB)

Source: MQL5 #19970