Tilson Moving Average (T3)

Developed by Tim Tillson, the Tilson Moving Average (T3) is a trend indicator with the advantage of having less lag than other ones. That is a faster-moving average. The T3 moving average is an indicator of an indicator since it includes several EMAs of another EMA. Unlike any other moving average, it adds the so-called volume factor, a value between 0 and 1. Like the SMA, traders typically use this indicator to spot trends and trend reversals. It is mainly done by crossovers between a fast and a slow-moving average. When the fast moving average crosses the slow one upwards, a buy signal is generated due to the price showing bullish signs. However, when the fast-moving average crosses the slow one down the opposite happens, the bears are taking over and producing a sell signal.