Blockchain and Cryptocurrency Advanced - The Combination of Two TEMAs at Different Periods and Several Signals that Can Be Extracted from It

When it comes to using any form of moving average indicator most especially the Triple Exponential Moving Average TEMA indicator, crossovers are very useful when it comes to identifying buy and sell signals. Crossovers can either be the bullish crossover which can also be referred to as the golden cross or the bearish crossover which can also be referred to as the death cross.

Bullish crossover (Golden cross) using TEMA

Making use of the 50 TEMA and 200 TEMA we can clearly see the occurrence of the bullish crossover or the golden cross. The smaller period 50 TEMA line crossed above the longer period 200 TEMA line. This bullish crossover or golden cross means that the buyers or the bulls are about to take control of the market. After that, we can see that we can see that an uptrend price movement followed next. For me, the Buy signal was spotted as price couldn’t break below the 50 TEMA line after the crossover. The price was above both the TEMA lines and the 50 TEMA line served as a dynamic support for the price.

Bearish crossover (Death cross) using TEMA for Sell Signal

Making use of the 50 TEMA and 200 TEMA we can clearly see the occurrence of the bearish crossover or the death cross. The smaller period 50 TEMA line crossed below the longer period 200 TEMA line. This bearish crossover means that the sellers or the bears are about to take control of the market. After that, we can see that a downtrend price movement followed next. For me, the Sell signal was spotted as price couldn’t break above the 200 TEMA line after the crossover. The price was below both the TEMA lines and the 200 TEMA line served as the resistance for the price.