The technical indicator TEMA Band is based on Bollinger Bands applied to a moving average Adaptive Moving Average AMA
structure
. Median strip: Triple Exponential Moving Average AMA
. Upper band: triple exponential moving average AMA + Standard deviation
. Lower band: Triple Exponential Moving Average AMA - Standard deviation
Interpretation Signals And Rules Of Trading
. The interpretation of Bollinger Bands is based on the fact that the price action tends to oscillate between the upper and lower bands of Bollinger.
. Bollinger bands vary in width with volatility
. During volatile periods, the Bollinger Bands differ
. While the less volatile periods, Bollinger Bands are tightened
. Sudden price reversal tend to occur when Bollinger bands are tightened because of the volatility decrease
. If the price action breaks the upper Bollinger Band, a continuation of the trend is expected
. If the peaks and troughs outside Bollinger bands are followed by peaks and troughs within the Bollinger bands, it is a reversal signal of possible trend
. the price movement that began at a Bollinger bands generally endorses the bollinger band opposite
Read more about the rules and trading signals:
Bourse - Trader Bollinger Bands
Exchange - Trader Standard Deviation
Exchange - Trader Moving Average WADA
Analysis Trading
Trade - Example
Exchange
Nasdaq Comp Trading. | COMP
Time Frame: 15 Minutes - M15
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