Description

• TMA is a weighted average that gives more weight to middle data
• THE MIDDLE data gets highest weight while the previous and subsequent data get weighted in descending order. Example- to calculate TMA of 5 bars, weight assigned to the five bars shall be: – 1, 2, 3, 2, 1
• TMA is the double-smoothed SMA i.e. SMA of SMA

Interpretation

• Similar to other averages TMA is also used for confirming trends and overall price direction
• The price line moving above the TMA indicates an uptrend suitable for Buy trades
• The price line moving below the TMA indicates an downtrend suitable for Sell trades
• Plotting two or more TMA can be used for crossovers

Default Parameters Used/Inputs

• Data line- Close line, High line, Open line, Low line or others
• Bars – number of bars for which TMA has to be calculated

Returns/Output

TMA graph line reflecting a triangular data emphasis

Formula

TMA = n/2 Period SMA of [ (n/2+1) Period SMA of (Price) ]
if Period is an even number
TMA = (n+1)/2 Period SMA of [(n+1)/2 SMA of ( Price) ]
if Period is an odd number