TEMA MACD with Dual Discontinued Signal Lines
Summary
This note describes a MACD variation that calculates its moving averages with the triple exponential moving average (TEMA) instead of the conventional exponential moving average (EMA). It also replaces the usual single signal line with two discontinued signal lines, which the author presents as levels intended to help identify signals and short-term reversals.
The note claims that the combination responds faster than standard MACD and a DSL version based on double exponential averages, and that tests suggest it may reduce false signals. It offers no test setup, market, parameters beyond the indicator construction, numerical results, or risk analysis, so those claims cannot be independently assessed from the text. The proposed faster response may suit scaling approaches, but the document does not define entry, exit, or position-sizing rules. It is best read as a description of an indicator design rather than a complete trading strategy or validated performance finding.
Key ideas
- The indicator uses TEMA in place of EMA for the MACD calculation.
- It uses two discontinued signal lines rather than one.
- The author suggests the two lines may help filter false signals and identify short-term reversals.
- The note claims quicker responses than standard MACD and a DSL DEMA variant, without reporting test details.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.