If you ask technical traders what their favorite indicators are, surely the majority of the answers are Moving Average indicators. This is certainly not surprising, the MA indicator is one of the most simple and easy to use technical tools, but it can provide various important indications for its users.
Additionally, this indicator seems to have a lot of “offspring”, ranging from EMA (Exponential Moving Average), SMA (Simple Moving Average), WMA (Weighted Moving Average), and TMA (Triangular Moving Average).
The first three types of derivatives may be familiar to you, but what about the Triangular Moving Average? What is the Triangular Moving Average and what kind of trading strategy is appropriate to use with this indicator?
What Is Triangular Moving Average (TMA)?
Most technical traders certainly understand the types of derivatives Moving Average. However, what happens if they a new type of indicator called the Triangular Moving Average? The last “descendant” of this MA indicator is a refined SMA, so its movements on the chart are much smoother than SMA.
According to The Balance, the TMA shows the average (or mean) price of an asset over a specified number of data points—usually a number of price bars.
Unfortunately, this TMA indicator is not generally installed on various trading platforms. You have to determine whether this indicator is available in the trading software. You can click the Indicator menu, then enter “Triangular Moving Average”, “Moving Average Triangular”, or “MovAvgTriangular”.
One alternative to outsmart the TMA indicator is by adding a Moving Average indicator. It is customizable to the TMA formula. Additionally, you can also use two high school indicators and set them with the same period.
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