The tema_custom indicator for MetaTrader 4 is deployed in smoothing price and other data. Designed by Patrick Mulloy and initially published in 1994, the tema_custom MT4 indicator is made up of a single exponential moving average, a double exponential moving average along with a triple exponential moving average.
What the tema_custom does is that is filters out volatility and smoothens fluctuations in price, thereby allowing users spot trends with little lag.
The tema_custom MetaTrader 4 indicator is a valuable tool that helps in spotting trends that will last long and are robust, but might offer little help during range-bound market that exhibit short term fluctuations.
Creating this indicator via successive moving averages implies that the lag time associated with moving averages is cut down and the technical study is less subject to irrelevant fluctuations in price that are typical in long term trend.
When price stays well above the tema_custom MT4 indicator line, it is said to be a bullish trend, but when price stays below the tema_custom MT4 indicator 4, price is said to be bearish.
One of the demerit of the tema_custom MetaTrader 4 indicator is its ability to give false market reversal alerts especially in sessions of extreme high volatility.
This means that we can complement the use of the tema_custom by adding a different type of trend indicator and also employing price action pattern to confirm trend reversal signals from the tema_custom MetaTrader 4 indicator.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (MAPeriod, MAMethod, MAPrice), Colors, width & Style.
Time frames: Any
Type: pattern & support/resistance