The T3 moving average by Tim Tillson is a triple smoothed combination of the DEMA (see Double and Triple Exponential Moving Average) and a plain EMA (see Exponential Moving Average).
A given “volume factor” V (default 0.7) controls how much of the DEMA is used. The factor ranges from 0 which gives a plain EMA, up to 1 which gives a full DEMA. Values in between are a combination. The formula for this “generalized DEMA” is
GD(N,v) = (1-v)*EMA[N] + v*DEMA[N]
or equivalently as follows, emphasising how a portion of the momentum term present in the DEMA is used,
GD(N,v) = EMA[N] + v * (EMA[N] - EMAofEMA[N])
T3 applies this three times,
T3(N,v) = GD(N,v) of GD(N,v) of GD(N,v)
The following graph shows the weightings that result from N=10 and v=0.7.
At the lower v=0 extreme T3 is simply a tripled EMA (see EMA of EMA of EMA). At the upper v=1 extreme T3 is a DEMA of DEMA of DEMA, and the following is the weights for that (again N=10),
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