The input parameters are the number of periods n and a velocity value v. To calculate the T3 line first a generalized double EMA is to be calculated as shown below:
- Code: Select all
GD(n,v) = EMA(n) * (1 + v) - EMA(EMA(n)) * v
Finally you get the T3 value by this formula:
- Code: Select all
T3(n) = GD(GD(GD(n)))
The implementation quiet differs slightly from the formula above:
- Code: Select all
EMA[1] = EMA(Source, n) and EMA[i] = EMA(EMA, i - 1)
T3 = -v^3 * EMA[6] + (3 * v^2 + 3 * v^3) * EMA[5] + (-6 * v^2 - 3 * v - 3 * v^3) * EMA[4] + (1 + 3 * v + v^3 + 3 * v^2) * EMA[3]
The T3 indicator can be downloaded here:
Chris