It is a moving average that attempts to decrease lag time by assigning more weight to the most recent prices. The calculation of the triple exponential moving average takes multiple exponential moving averages of the original exponential moving average then subtracts out some of the time lag.

The triple exponential moving average can help identify trend direction, signal potential short-term trend changes or pullbacks, and provide dynamic support or resistance.

Calculation:

TEMA = ( 3 * EMA1 ) - ( 3 * EMA2 ) + EMA3

where:

EMA1 = Exponential Moving Average

EMA2 = EMA of EMA1

EMA3 = EMA of EMA2