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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*),

Copyright 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2014, 2015, 2016, 2017 Kevin Ryde

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