Triple Weighted Moving Average

Patrick Mulloy first presented the Triple Exponential Moving Average (TEMA) in the  “Stocks & Commodities” magazine. The TWMA formula is based on the TEMA but applies the calculation to a WMA instead of the EMA.

The Triple Weighted Moving Average (TWMA) for NinjaTrader 8

Indicator Description

The Triple Weighted Moving Average (TWMA) is based on the TEMA. However, it applies the formula to a WMA instead of the EMA. The TWMA indicator can be compared to the linear regression indicator, which is shown in the chart screenshot. A post discussing different approaches for assigning weight to moving averages, specifically contrasting the ALMA indicator to the WMA was discussed in our Indicator Spotlight newsletter.

Other Library Indicators

A higher timeframe TWMA may be used in combination with other tools for technical analysis, such as channel indicators, momentum oscillators, support / resistance levels and volume analysis. For channel indicators, you may review the Commodity Channel IndexDonchican Channel or the Squeeze Channel. A Donchian Channel Strategy was reviewed in our Indicator Spotlight, as was the Squeeze Momentum setup. Furthermore, the Indicator Spotlight looked at how the TDI indicator utilizes the RSI in three timeframes.

For support / resistance, you may consider using Daily Pivot Levels as discussed in our in our Indicator Spotlight. A number of Pivot indicators are available from the Session Tools category, including the Daily PivotsWeekly PivotsMonthly Pivots and the N-Monthly Pivots.

For volume you may consider Relative Volume analysis. The Relative Volume indicator was discussed in our Indicator Spotlight. For instruments that lack reliable volume information (FX/Crypto currencies), you may consider analyzing Relative Ranges. Our Relative Range indicator was also reviewed in the Indicator Spotlight.

Other that the TWMA, our moving average category includes the ALMA, DWMA, Holt EMA, Exponential Hull Moving AverageMoving Average WaveMA Cross, Sine WMA, Tillson T3 and the Trigger Lines. Our Indicator Spotlight specifically looked at the Trigger Lines Trend Bias, comparing the Cross vs. Thrust trend definition.

You may also want to review our Trend Analysis and Trend Filters, such as the ADXADXVMADirectional Movement Index (DMI)Efficiency RatioButterworth FilterGaussian FilterLaguerre FilterRainbow FilterSupersmoother Filter and the Supertrend indicator

Finally, you may consider managing positions by using the Chandelier Stop. Other trailing stop indicators were discussed in our Spotlight Newsletter, namely the ATR Trailing Stop, the Chande Kroll and the Wilder Volatility Stop.

The TWMA indicator is available for NinjaTrader 8.

Triple Weighted Moving Average