# TEMA: Triple Exponential Moving Average > "Patrick Mulloy looked at the lag of an EMA and took it personally. TEMA is what happens when you apply algebra to impatience." The Triple Exponential Moving Average (TEMA) is a lag-reducing filter that combines a single, double, and triple EMA. Unlike a simple triple smoothing (which would be incredibly slow), TEMA uses a weighted combination of the three to cancel out the lag, resulting in an indicator that hugs price action tighter than a spandex cycling short. ## Historical Context Introduced by Patrick Mulloy in *Technical Analysis of Stocks & Commodities* (Jan 1994), "Smoothing Data With Less Lag." Mulloy's goal was to replace the standard moving averages in MACD and other indicators to reduce the delay in signal generation. ## Architecture & Physics TEMA is not just "EMA applied three times." That would be $EMA(EMA(EMA(x)))$. TEMA is a composite: $$ TEMA = 3 \cdot EMA_1 - 3 \cdot EMA_2 + EMA_3 $$ This formula effectively projects the trend forward to compensate for the delay inherent in smoothing. ### Convergence Speed Because of the aggressive weighting, TEMA converges (warms up) faster than a standard EMA. While an EMA takes $\approx 3.45(N+1)$ steps to converge to 99.9%, TEMA stabilizes quicker due to the subtraction terms canceling out the initial error. ## Mathematical Foundation ### 1. The Cascade $$ EMA_1 = EMA(Price) $$ $$ EMA_2 = EMA(EMA_1) $$ $$ EMA_3 = EMA(EMA_2) $$ ### 2. The Combination $$ TEMA = (3 \times EMA_1) - (3 \times EMA_2) + EMA_3 $$ ## Performance Profile ### Operation Count (Streaming Mode) TEMA requires 3 cascaded EMA updates plus the combination formula: | Operation | Count | Cost (cycles) | Subtotal | | :--- | :---: | :---: | :---: | | EMA update (×3) | 3 | 7 | 21 | | MUL (3×e1, 3×e2) | 2 | 3 | 6 | | SUB (3×e1 - 3×e2) | 1 | 1 | 1 | | ADD (+ e3) | 1 | 1 | 1 | | **Total (hot)** | **7** | — | **~29 cycles** | During warmup, each EMA stage has additional compensator overhead (~21 cycles × 3 = ~63 cycles). **Total during warmup:** ~92 cycles/bar; **Post-warmup:** ~29 cycles/bar. ### Batch Mode (SIMD Analysis) TEMA is inherently recursive due to cascaded EMAs. SIMD parallelization across bars is not possible. Each EMA stage must complete before feeding the next: | Optimization | Operations | Cycles Saved | | :--- | :---: | :---: | | FMA in each EMA stage | 3 FMA vs 3×(MUL+ADD) | ~6 cycles | | Inline combination | Avoid intermediate stores | ~2 cycles | **Per-bar efficiency:** ~29 cycles is 4× EMA cost, as expected for 3 EMA stages + combiner. ### Quality Metrics | Metric | Score | Notes | | :--- | :---: | :--- | | **Accuracy** | 10/10 | Matches TA-Lib exactly | | **Timeliness** | 10/10 | Extremely low lag; nearly zero-lag tracking | | **Overshoot** | 5/10 | Significant overshoot on sharp reversals | | **Smoothness** | 6/10 | Less smooth than SMA/EMA due to high responsiveness | ### Benchmark Results | Metric | Value | Notes | | :--- | :--- | :--- | | **Throughput** | ~6 ns/bar | 3× EMA overhead | | **Allocations** | 0 bytes | Zero-allocation in hot paths | | **Complexity** | O(1) | Constant time regardless of period | | **State Size** | 96 bytes | Three EMA states (32 bytes each) | ## Validation | Library | Status | Notes | | :--- | :--- | :--- | | **QuanTAlib** | ✅ | Validated. | | **TA-Lib** | ✅ | Matches `TA_TEMA` exactly. | | **Skender** | ✅ | Matches `GetTema` exactly. | | **Tulip** | ✅ | Matches `tema` exactly. | | **Ooples** | ❌ | Diverges significantly due to initialization logic. | ## C# Implementation Considerations ### State Management TEMA maintains six EmaState instances—three current, three previous—enabling atomic rollback on bar corrections: ```csharp private record struct EmaState(double Ema, double E, bool IsHot, bool IsCompensated); private EmaState _state1, _state2, _state3; private EmaState _p_state1, _p_state2, _p_state3; ``` The `E` field tracks bias compensation factor for each EMA stage independently. Each state auto-transitions via `IsCompensated` flag when bias becomes negligible. ### Precomputed Constants Constructor calculates smoothing constants once: ```csharp _alpha = 2.0 / (period + 1); _decay = 1 - _alpha; ``` These constants are reused across all three EMA stages, avoiding repeated division. ### FMA Usage Each EMA update uses FusedMultiplyAdd for the standard EMA formula: ```csharp double newEma = Math.FusedMultiplyAdd(state.Ema, _decay, _alpha * input); ``` The final TEMA combination `3*e1 - 3*e2 + e3` could use FMA but the coefficients (3, -3, 1) make chained FMA marginal; current implementation uses direct arithmetic. ### Bar Correction Pattern TEMA's cascaded structure requires coordinated state rollback: ```csharp if (isNew) { _p_state1 = _state1; _p_state2 = _state2; _p_state3 = _state3; } else { _state1 = _p_state1; _state2 = _p_state2; _state3 = _p_state3; } ``` All three stages rollback atomically, ensuring consistent cascade state when `isNew=false`. ### Memory Layout | Field | Type | Size | Purpose | | :--- | :--- | :---: | :--- | | `_alpha` | double | 8B | Smoothing constant | | `_decay` | double | 8B | 1 - alpha | | `_state1` | EmaState | 24B | First EMA state | | `_state2` | EmaState | 24B | Second EMA state | | `_state3` | EmaState | 24B | Third EMA state | | `_p_state1` | EmaState | 24B | Previous state 1 | | `_p_state2` | EmaState | 24B | Previous state 2 | | `_p_state3` | EmaState | 24B | Previous state 3 | | **Total** | | **160B** | Per indicator instance | Each EmaState contains: Ema (8B), E (8B), IsHot (1B), IsCompensated (1B) + padding (~6B) = ~24B. ### Common Pitfalls 1. **Overshoot**: TEMA is so responsive it can overshoot price turns, creating a "whiplash" effect in volatile markets. 2. **Noise**: By reducing lag, TEMA sacrifices some noise suppression. It is "nervous" compared to an SMA. 3. **Identity Crisis**: Often confused with T3 (Tillson). T3 is a generalized version; TEMA is specifically T3 with $v=1$.