Clini-cGoldLine

TMA (Triangular Moving Average) Indicator – Explanation

The Triangular Moving Average (TMA) is a type of moving average used in technical analysis to smooth price data and identify trends with reduced noise. Unlike simple or exponential moving averages, the TMA gives more weight to the middle portion of the price series, resulting in a smoother and more stable line.

The TMA is calculated by averaging the prices twice – it first applies a simple moving average (SMA), and then applies another SMA to the result. This double smoothing makes the TMA lag more than other moving averages, but it also reduces the number of false signals, making it ideal for trend-following strategies.

Because of its smoothness, the TMA is particularly useful for:

Trend identification: Helping traders visualize the overall market direction.

Support and resistance: The midline and bands (if included) can act as dynamic support/resistance zones.

Filtering trades: TMA can be used in conjunction with oscillators like Stochastic or RSI to confirm entries in trend-following systems.

However, one limitation is that traditional TMA lines are centered (non-repainting versions shift forward), meaning they are not suitable for real-time signal generation unless adapted with lags or custom algorithms.