TRIPLE Moving Averages

Triple Moving Average System with Composite Average

This strategy uses three moving averages of different timeframes to assess trend direction, momentum, and potential entry/exit points. The averages are:

Fast MA (Short-term) – Typically a 12-period moving average.

Reacts quickly to price changes, providing early signals.

Medium MA (Intermediate-term) – Often a 21-period moving average.

Smooths out noise and confirms the trend suggested by the Fast MA.

Slow MA (Long-term) – Usually a 50-period moving average.

Represents the dominant trend; acts as a strong support/resistance level.

Additionally, the Composite Moving Average (CMA) is calculated as the average of the three MAs, providing a balanced reference point:

How to Use the System:
Bullish Signal:

When the Fast MA crosses above the Medium MA and both are above the Slow MA, confirming an uptrend.

The price staying above the CMA reinforces bullish strength.

Bearish Signal:

When the Fast MA crosses below the Medium MA and both are below the Slow MA, indicating a downtrend.

The price staying below the CMA confirms bearish momentum.

Trend Confirmation:

The slope and order of the MAs (Fast > Medium > Slow = uptrend; Fast < Medium < Slow = downtrend).

The CMA acting as dynamic support/resistance.

Advantages:
Reduces false signals compared to single or dual MA systems.

The CMA smooths volatility and provides a clearer trend bias.

Example Settings (Customizable):
Fast MA: 12-period SMA/EMA

Medium MA: 21-period SMA/EMA

Slow MA: 50-period SMA/EMA