Concept
T3
T3 is a Trend concept. The Library holds 3 implementations, each one a working definition you can pull into Quant.
Tillson
Top T3 indicators
3 total
What is T3?
T3 is a smoothing technique published by Tim Tillson in the late 1990s. Its building block, which Tillson called generalized DEMA (GD), starts from an EMA and adds back a fraction v of the difference between that EMA and the EMA of the EMA: GD(x) = (1 + v) × EMA(x) - v × EMA(EMA(x)). The fraction v is the volume factor, a number between 0 and 1 with no connection to traded volume. T3 applies GD three times in a row: T3 = GD(GD(GD(price))).
The volume factor sets the temperament. At v = 0 the construction collapses into a triple-cascaded EMA, maximally smooth and maximally laggy; at v = 1 every stage becomes a full DEMA, fast but overshoot-prone; Tillson's suggested 0.7 sits between, and most implementations keep it as the default. The result is one of the smoothest curves in the moving-average lineage relative to its lag, with mild overshoot at turns. Internally the three stages expand into a cascade of six EMAs whose last four are combined with fixed coefficients that depend only on v, which is how most platforms compute it.
How to calculate T3
T3 takes a length N, used by every EMA stage, and a volume factor v, commonly 0.7.
- 1Define the building block: GD(x) = (1 + v) × EMA(x) - v × EMA(EMA(x)), with both EMAs of length N.
- 2Apply it three times: T3 = GD(GD(GD(price))). Expanded, that requires six cascaded EMAs, with the last four combined using fixed coefficients determined by v.
- 3Tune v for temperament: toward 0 for maximum smoothness with triple-EMA lag, toward 1 for DEMA-like speed with overshoot; 0.7 is the standard compromise.
How traders use it
- As a slope-read trend filter: T3 is smooth enough that its direction changes rarely, so rising versus falling serves as a bias that does not flip on every candle; the cost is a late turn at real reversals.
- In crossover logic against price or a faster average, where the smooth line produces fewer but later crosses than the equivalent EMA setup.
- As a smoothing stage for other series: running an oscillator or volume stream through T3 strips noise before signal rules, trading a beat of delay for far fewer flickers.
- As dynamic support or resistance in sustained trends, where the stable curve gives pullbacks a visible reference; as with any moving average, price is not obliged to respect it.
T3 vs similar averages
TEMA: TEMA combines three cascaded EMAs with fixed weights chosen purely to cancel lag; T3 cascades a DEMA-like block three times with a tunable v. TEMA is generally the faster and twitchier of the two, T3 the smoother, with v setting how close it gets to TEMA-like speed.
DEMA: DEMA is a single lag-cancelled stage. T3's building block generalizes it (v = 1 reproduces DEMA behavior at each stage), and stacking three stages with v below 1 trades some speed back for much smoother output.
JMA: Both are known for smooth-yet-responsive lines. T3 is a fully public, fixed formula whose character is set once by v; JMA is proprietary and adapts bar by bar as conditions change.
Related concepts · Moving-average lineage
Concept family
Trend
100 concepts mapped · 88 in the Library
T3 FAQ
What does the volume factor in T3 mean?
It is an unfortunate name: v has nothing to do with traded volume. It is a dial between 0 and 1 controlling how much lag correction each stage applies. At 0, T3 degrades to a triple-cascaded EMA (smoothest, laggiest); at 1, each stage is a full DEMA (fastest, overshooting). Tillson's published work uses 0.7, which most implementations keep as the default.
Is T3 the same as TEMA?
No, though both build on cascaded EMAs. TEMA is a fixed combination of three EMAs designed purely to cancel lag. T3 applies a generalized-DEMA block three times, uses six EMAs internally, and exposes the volume factor so you choose the smoothness-speed balance. In practice T3 runs smoother and slightly slower than TEMA at the same length.
What are the standard settings for T3?
The widely used volume factor is 0.7, following Tillson. Length has no universal standard; it plays the same role as any moving-average length, with longer values smoothing and lagging more. Because T3 already smooths heavily, equal lengths are not comparable across MA types, so settings should be judged on the chart and tested rather than copied.
Build T3 your way.
Quant writes, tests, and refines it with you — then it runs on LuxAlgo charting or ports to TradingView.