The TEMA was developed by Patrick Mulloy. It is a moving average that includes several EMAs in its calculation to smooth price fluctuations, but without the lag that characterizes trend indicators.

It is one of the fastest, and possibly the fastest, moving average available in trading. It would react quicker to price movements than any other moving average like DEMA or WMA.

The TEMA will spot entry and exit opportunities through crossovers between a fast and a slow moving average.

Therefore, when the fast moving average crosses the slow one upwards, the price is more likely to be bullish and it generates buys. When the opposite happens, the fast moving average crosses the slow one downwards, the bears are more present, which gives a sell signal.