Tema indicator is a forex trading Indicator and it is a trend indicator. Tema indicator is a very simple indicator and it is easy to start with. Tema indicator is concerned with identifying the beginning of the trend and end of the trend. Tema indicator is used by newbies as well as experienced traders and it works fine for both groups. Tema indicator is back tested and optimized indicator which works best for the forex market. Tema indicator will generate above average result when it is combined with other indicators for verifying the signals.

When you install Tema indicator in your trading software, your chart should look like this:

Tema indicator

It is actually a moving average which is a best fit to trade in the forex market. It is a red moving average that you see on the main chart. When the market is above this indicator, it indicates bullish market. And when market is below Tema indicator it indicates bearish market.

Most of the time traders underestimate the power of simplicity. There’s a popular quote: keep it simple stupid! This saying implies in trading too. Sometimes traders make complicated systems and not are profitable whereas some use very simple strategy and get consistent results. While using this indicator some measures should be used. Like- one should always be conscious about the main trend of the market and one should never trade against the trend.

Buying Conditions Using Tema Indicator.

• Market should be up trending.
• Currency pair should be bouncing from the recent support.
• Market should cross above the Tema Indicator.
• Place your long position when above conditions are met.
• Place your stop loss below the recent support.
• Take your profit when market cross below Tema indicator.

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Selling Conditions Using Tema Indicator.

• Market should be down trending.
• Currency pair should be falling from the recent support.
• Market should cross below the Tema Indicator.
• Place your short position when above conditions are met.
• Place your stop loss above the recent resistance.
• Take your profit when market cross aboveTema indicator.

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