The WaveRunner Multiple Moving Averages

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The WaveRunner consists of a Triple Exponential Moving Average (or TEMA). This study first calculates the exponential moving average(EMA) of the security. It then finds the EMA of that first EMA and then finally calculates a third EMA based on the second EMA. Then, we added in a volume weighted moving average, allowing us to place greater emphasis on periods with higher volume.

Due to its minimal lag, the triple exponential moving average is a good tool for trend identification and volatility measurement. Adding in a VWMA further improves its accuracy as it provides another way to check the strength of a trend.


The first EMA is shown as the green line of circles. The EMA of that line is then plotted as the middle yellow line. Finally, the third EMA is the red line of circles. When the first EMA is greater than the third, it indicates a sustained positive trend and the area between the two lines is filled green. On the other hand, when the third EMA is greater than the first EMA, it indicates a negative trend and the area between the two lines is filled red. Finally, the VWMA is shown as the darker green and red areas both below and above the first EMA.

This indicator is best used for trend identification and confirmation, filtering out volatility. Reduced lag allows traders to interpret sharp price fluctuations.