Indicators

Tillson T3 Moving Average Indicator Explained

How the Tillson T3's six-stage smoothing with a volume factor produces a silk-smooth trend line, and how to automate T3 in Setup.Cash.

By Setup.Cash TeamLast updated 2026-07-032 min read211 words

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Tim Tillson's T3 runs price through six stages of exponential smoothing blended by a 'volume factor' coefficient. The output is one of the smoothest trend lines in technical analysis — with far less of the lag penalty that smoothing usually costs.

How It Works

  • Six chained EMAs are combined with weights derived from the volume factor (typically 0.7).
  • The construction cancels much of the lag the extra smoothing would normally add.
  • The result bends through trend changes in smooth arcs rather than jagged flips.

How to Trade It

T3 shines wherever whipsaw is your enemy: as the slow line in a crossover pair, as a slope-direction regime filter, or as a dynamic support line for pullback entries in established trends. Its arcs make 'T3 rising for N bars' an unusually stable condition.

Building It in Setup.Cash

Add Tillson T3 Moving Average in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Compare with JMA, the other smoothness champion. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.

Not financial advice. Trading involves risk. Use backtesting and paper trading before risking real capital.

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Use Setup.Cash to create, backtest, and paper trade rule-based strategies without relying on guesswork. Not financial advice. Trading involves risk.