## What Is The Triangular Moving Average

The Triangular Moving Average (TMA) is similar to other moving averages in that it shows the average (or mean) price over a specified number of data points (usually a number of price bars).

## Triangular Moving Average (TMA) Indicator

The Triangular Moving Average (TMA) is a momentum indicator and is very similar to other moving averages. However, the triangular moving average is double smoothed, meaning it is averaged twice.

## How To Calculate Triangular Moving Average (TMA)

Formula:- SMA = (P1 + P2 + P3 + P4 + .. + PN) / N

TMA = (SMA1 + SMA2 + SMA3 + SMA4 + .. SMAN) / N = SUM (SMA values)/N

## Why Use Triangular Moving Average (TMA)

The main reason traders use the Triangular Moving Average (TMA) is to double smooth the data, which produces a line on the chart that isn’t as sensitive as an SMA. The TMA can be advantageous or can pose problems, depending upon how it is used.

## How to Use Triangular Moving Average (TMA) Trading Strategy

**Bullish Scenario:-** TMA moves similar to SMA, just smother. It is a lagging indicator, and the indication for a bullish scenario is also similar, i.e. if the value of TMA increases, it indicates that there is a bullish market for the commodity.

**Bearish Scenario:-** If the value of TMA decreases, it indicates a bearish market for the commodity.

# Building The Triangular Moving Average (TMA) Trading Strategy in Mudrex

## Strategy:-

**BUY:- **TMA(30) crosses up TMA(90)

**SELL:- **TMA(30) crosses down TMA(90)

**TIME FRAME:- **6Hrs

Creating on Mudrex:-

We will use 2 TMA compare blocks. One for selling and One for buying.

For buying, we will use the following settings:-

For selling, we will use the following settings:-

Final Strategy:-

Testing:-

Running on Binance Futures: BTC/USDT with tick interval of **6H**** **yielded an overall profit of 216.68%

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