Triangular Moving Average (TRIMA)
Description
TMA, Triangular Moving Average is used to smooth out price data and reduce the lag that is inherent in other moving averages. It's similar to WMA, but uses a more complex formula to derive a further smoothed average.
Calculate TMA, first calculate the average of the price data over a certain number of periods. This average is then multiplied by a weighting factor, with the most recent price receiving the highest weight and the oldest price receiving the lowest weight. The resulting values are then summed and divided by the total weighting factor to give the TMA.
TMA is used to identify trends, if the price is above the TMA, it may indicate an uptrend, while if the price is below the TMA, it may indicate a downtrend. Use the TMA in combination with our other tools to make informed decisions.
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