Tillson T3

Presented by Tim Tillson in the January 1998 issue of Stocks & Commodities, the Tillson moving average (TMA) is also known as T3. Our version is coded in a more efficient way and allows for selecting the Fulks-Matulich formula as well.

Indicator Description

The Tillson T3 indicator is one of the smoothest moving averages and is both composite and adaptive. The average is built using the EMA however, the formula is decomposed in order to improve smoothing.

The indicator can be used to generate buy/sell as follows:

  • If the indicator is sloping up, buy when prices retrace back down to T3
  • If the indicator is sloping down, sell when prices retrace back up to T3
  • Use two Tillson T3 Moving averages and generate buy signals when the fast average crosses above the slow, and vice versa for short signals.

The indicator is available for NinjaTrader 8.