T3 Moving Average: Triple Smoothing with a DEMA Influence Factor

Summary

The T3 moving average is presented as a smoother, lower lag indicator built from repeated exponential moving average calculations combined with a volume factor. Its inputs are the factor, the calculation period, and the applied price. The recursive construction repeatedly blends EMA values with a generalized DEMA-style adjustment, then combines the final smoothed values to produce the indicator.

The factor controls the balance between smoothing and responsiveness: at zero, the construction reduces to a triple EMA; at 100 percent, it becomes a triple DEMA. The document describes the indicator as potentially giving earlier entry signals with fewer false signals, but supplies no testing method, market examples, or performance evidence to substantiate those claims. It explains the calculation and parameter roles, so traders would need to evaluate its behavior and suitability on their own instruments and time frames.

Key ideas

• T3 combines repeated exponential smoothing with a DEMA influence adjustment.
• Its inputs are the volume factor, calculation period, and applied price.
• A zero factor yields triple EMA smoothing, while a full factor yields triple DEMA smoothing.
• The text claims reduced lag and fewer false signals but gives no supporting test results.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.