The Triangular Moving Average (also known as the TMA) is similar to other Moving Averages in that it shows the mean price over a specified number of previous prices.
However, the triangular moving average differs from most moving averages in that it is double smoothed (i.e. it is averaged twice).
The triangular moving average can be calculated using various inputs (prices, volume, or another technical indicator), with this one calculated using the price.
The triangular moving average is usually displayed with the price bars as the Moving Averages lines.
Main settable options
The configurable options of this indicator are:
Periods: 30 Number of periods ago for calculation.
ApplyTo: 0 apply to code, this codes are:
0 Close price.
1 Open price.
2 High price.
3 Low price.
4 Median price, (high low)/2.
5 Typical price, (high low close)/3.
6 Weighted close price, (high low close close)/4
Technical verdict
As with the normal Moving Averages, the triangular moving average can be used in the same way but taking care that it is much smoother.
You can see the difference in the picture above, where the red line is the TMA and the yellow dashed line is a normal Exponential Moving Average, both with the same periods and applied to closing prices.
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