TEMA with Slope Color [MrBuCha]

This TEMA indicator is particularly useful for trend following strategies. The key innovation here is using a higher timeframe (default 1-hour) to get a broader perspective on the trend direction, while the color-coding makes it immediately obvious whether the momentum is bullish (blue) or bearish (orange).

The 200-period length makes this more suitable for swing trading rather than day trading, as it filters out short-term noise and focuses on significant trend movements.

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What is TEMA and How Does It Work?
TEMA (Triple Exponential Moving Average) is a technical indicator that builds upon the standard EMA to reduce lag and provide faster response to price changes. The calculation process is:

EMA1 = EMA of closing price with specified length
EMA2 = EMA of EMA1 with the same length
EMA3 = EMA of EMA2 with the same length
TEMA = 3 × (EMA1 - EMA2) + EMA3

This formula helps reduce the lag inherent in smoothing calculations, making TEMA more responsive to price movements compared to other moving averages.
Default Values

Length: 200 periods
Timeframe: "60" (1 hour)

Slope Colors

Blue: When TEMA is trending upward (tema_current > tema_previous)
Orange: When TEMA is trending downward (tema_current ≤ tema_previous)

Pros and Cons Summary
Advantages:

Fast Response: Reduces lag better than SMA and regular EMA
Easy to Use: Color-coded slope makes trend direction immediately visible
Multi-timeframe Capability: Can display TEMA from higher timeframes
Trend Following: Excellent for identifying trend direction
Visual Clarity: Clear color signals help with quick decision making

Disadvantages:

False Signals: Prone to whipsaws in sideways/choppy markets
Noise in Volatility: Frequent color changes during high volatility periods
Not Suitable for Scalping: Length of 200 is quite long for short-term trading
Still Lagging: Despite improvements, it remains a lagging indicator
Requires Confirmation: Should be used with other indicators for better accuracy

Best Use Cases:

Medium to long-term trend following
Identifying major trend changes
Multi-timeframe analysis
Combine with momentum oscillators for confirmation

Trading Tips:

Wait for color confirmation before entering trades
Use higher timeframe TEMA for overall trend bias
Combine with support/resistance levels
Avoid trading during consolidation periods