Tillson T3 Moving Average: The Moving Average That Actually Keeps Up with Price (2025)

You know that feeling when you're watching a chart and you can see the trend starting to shift, but your moving average is still stuck in the past? By the time it finally gives you a signal, half the move is already gone. You're always entering late, exiting late, and watching profits slip away.

Here's the thing about regular moving averages: they make you choose between smooth and fast. Want a smooth line that filters out noise? Get ready to wait forever for signals. Want quick signals? Enjoy getting whipsawed by every little price wiggle.

The Tillson T3 Moving Average takes a different approach. It's built to give you both smoothness and speed at the same time. Instead of making you pick one or the other, it uses a clever calculation method that keeps the line smooth while staying much closer to the actual price action. Think of it as a moving average that's actually paying attention.

What is the Tillson T3 Moving Average Indicator?

Tim Tillson created the T3 Moving Average back in the 1990s, and it's been quietly used by traders who got tired of the lag problem. People sometimes call it a "lag-less" moving average, which isn't technically true (nothing can predict the future), but it gets closer than most.

Here's what makes it different:

Most moving averages just take the closing prices and average them out. The T3 does something more interesting. It starts with a weighted price that looks at the high, low, and close together. Then it runs that through not one, not two, but six layers of exponential moving averages. Each layer smooths out the noise a bit more, but the way they're combined keeps the final line responsive.

There's also this thing called the volume factor (or vFactor in the code) that controls how aggressive the smoothing is. Set it higher and you get faster signals. Set it lower and you get smoother lines. The sweet spot is usually around 0.7, which is what most traders stick with.

This particular setup uses two T3 lines working together. The main one gives you the overall trend direction, while a faster secondary line (using Fibonacci numbers, because why not) helps catch momentum shifts earlier. When these two lines cross each other, that's when things get interesting. It's similar to how traders use dual moving average crossovers for swing trading, but with way less lag.

What is Pineify?

Pineify is basically a workspace for people who want to do more with TradingView. If you've ever wanted to write your own indicators, test trading ideas without risking money, or just understand how the indicators you're using actually work, that's what Pineify is for.

Here's what you get:

• Pine Script Editor: A place to write and test indicator code without fighting with syntax errors
• Indicator Library: Hundreds of ready-to-use indicators (including this T3 one) that you can add to your charts or modify
• Learning Resources: Tutorials that actually explain things instead of just throwing code at you
• Backtesting Tools: Test your trading ideas on historical data before you put real money on the line
• Alert System: Set up notifications so you don't have to stare at charts all day

The nice thing about Pineify is that it connects directly to TradingView. You write or modify an indicator in the Pineify editor, click a button, and it shows up on your chart. No copying and pasting code around or dealing with weird errors.

How to Add the Tillson T3 Moving Average to Your TradingView Charts

Getting this indicator on your charts is pretty straightforward. Here's the process:

Step 1: Get into the Pineify Editor

Head over to Pineify and sign in (or create an account if you don't have one yet). Open up the Pine Script editor. It's the main workspace where you'll be working with the code.

Step 2: Grab the Code

The full Pine Script code for the T3 indicator is included in this article (scroll down to find it). Copy the entire thing and paste it into your Pineify editor window. If you want to tweak any settings like the length or volume factor, this is where you'd do it.

Step 3: Push It to Your Chart

Once the code is in the editor, click the "Add to Chart" button. The indicator will pop up on your TradingView chart as an overlay, showing you both T3 lines right on top of your price action. You'll see them change colors based on the trend direction.

How to Actually Use the Tillson T3 Moving Average

The T3 gives you signals through color changes and line crossovers. Here's how to read what it's telling you:

1. Follow the Colors

This is the easiest way to use the T3. The indicator changes color based on what the trend is doing:

• Green/Blue lines: Price is trending up. This is when you want to be looking for long entries or holding positions you're already in.
• Red/Purple lines: Price is trending down. Time to think about shorts or staying out.
• Yellow line: The market is flat or confused. Usually best to sit on your hands and wait.

The basic play is simple: when the lines flip from red to green after a downtrend, that's your cue to look for long entries. When they flip from green to red after an uptrend, consider taking profits or looking for short opportunities.

2. Watch for Crossovers

Remember those two T3 lines? The faster one (the Fibo line) crossing the slower one gives you earlier signals than just waiting for color changes.

• Bullish crossover: The fast line crosses above the slow line. This often happens right as momentum is starting to shift up. It's an earlier warning than the color change.
• Bearish crossover: The fast line crosses below the slow line. Momentum is shifting down.

These crossovers can get you into moves earlier, but they can also give you more false signals in choppy markets. It's a trade-off.

3. Use the T3 as Dynamic Support and Resistance

Just like any moving average, the T3 lines act as areas where price tends to bounce or stall. In an uptrend, price often pulls back to the T3 line and then continues higher. That's your chance to add to a position or enter if you missed the initial move. In a downtrend, rallies back to the T3 can be opportunities to enter short positions.

If you're using the T3 for day trading, these support and resistance touches happen more frequently and can give you multiple entries throughout the session.

What Settings Should You Use for the Tillson T3?

The code comes with settings that work well for most people, but they're baked into the script rather than being adjustable in the indicator settings panel. Here's what's set up by default:

Default Settings:

• Main T3 Line:
  • Length: 8
  • Volume Factor: 0.7
• Fast T3 Fibo Line:
  • Length: 5
  • Volume Factor: 0.618

These numbers work pretty well for swing trading on 4-hour or daily charts. The 8-period main line gives you the overall trend, while the 5-period fast line catches momentum shifts earlier.

Want to change them? You'll need to edit the code directly in the Pineify editor. Here's what makes sense for different trading styles:

• Day trading (5-min to 15-min charts): Try shorter lengths like 5 and 3. The faster settings will give you more signals, but you'll also get more noise. You might want to combine this with other indicators like the MACD Leader to filter out false signals.

• Position trading (daily to weekly charts): Go longer, like 13 and 8. This filters out more of the short-term noise and keeps you focused on the bigger moves.

Whatever you change, backtest it first. What works on paper doesn't always work when real money is on the line.

How to Backtest Your T3 Strategy (Before You Risk Real Money)

You don't want to trade this blind. Backtesting your strategy shows you what would have happened if you'd been using these signals over the past few months or years. Here's how to do it with Pineify:

Step 1: Turn Your Strategy Into Rules

You need clear, specific rules that a computer can follow. Vague ideas like "buy when it looks good" won't work.

Example long entry:

• Fast T3 line crosses above the slow T3 line
• Enter at the open of the next bar

Example short entry:

• Fast T3 line crosses below the slow T3 line
• Enter short at the open of the next bar

Step 2: Figure Out Your Exits

This is where most people mess up. You need to know when you're getting out before you get in.

• Take profit: You could exit when the lines cross back the other way, or use a fixed risk/reward ratio like 2:1 or 3:1.
• Stop loss: Put your stop below a recent swing low (for longs) or above a recent swing high (for shorts). Or use an ATR-based stop, like 2 times the Average True Range.

Step 3: Run the Backtest in Pineify

Open the Pineify Strategy Editor and paste in the T3 indicator code. Then add your entry and exit logic using Pine Script's strategy.entry() and strategy.exit() functions. Set your backtest parameters (time period, starting capital, commission costs), and hit run.

The results will show you the net profit, win rate, maximum drawdown, and a bunch of other metrics. Pay attention to the drawdown especially. That's how much you would have been down at the worst point, and it tells you if you can actually stomach this strategy when it's not working.

Questions People Actually Ask About the T3 Moving Average

How is the T3 different from a regular EMA or SMA?

The T3 responds faster and sticks closer to price than an EMA or SMA with the same period length. It does this by running the price through six layers of exponential moving averages instead of just one. The result is a line that's both smooth and responsive, which is usually an either/or situation with regular moving averages.

Is the T3 a leading indicator or does it lag like other MAs?

It's still a lagging indicator because it's based on past prices. Nothing can predict the future. But the T3 lags less than most other moving averages, which is why people sometimes call it "lag-less." It's more accurate to say it's a fast-responding lagging indicator.

What's the volume factor (vFactor) actually doing?

The volume factor controls how aggressive the smoothing is. Turn it up toward 1 and you get faster, more responsive signals with less smoothing. Turn it down toward 0 and you get smoother lines but more lag. The default of 0.7 is what most traders use because it balances both pretty well.

Can you use this on any timeframe?

Yeah, it works on any timeframe from 1-minute charts to monthly charts. But like most indicators, it's more reliable on higher timeframes. The 4-hour, daily, and weekly charts filter out more of the random noise and give you cleaner signals. On really short timeframes, you'll get more false signals.

Why does this script use two T3 lines instead of just one?

The dual-line setup gives you crossover signals. The faster line reacts to price changes quicker, while the slower line shows the overall trend. When the fast line crosses the slow line, that's your signal that momentum is shifting. It's a more complete system than just watching one line change direction.

Does the T3 work better for certain markets or trading styles?

The T3 works well for trending markets and is popular with swing traders who hold positions for days to weeks. It's less useful in choppy, sideways markets where you'll get whipsawed by false signals. Day traders can use it on shorter timeframes, but you'll want to combine it with other tools to filter out the noise.

Quick Answers to Common T3 Questions

Q: Can I adjust the T3 settings without editing the code?

A: Not with this particular script. The settings are hardcoded, so you need to edit the Pine Script directly in the Pineify editor to change them. It's not hard to do, just find the length and vFactor values in the code and change the numbers.

Q: What other indicators work well with the T3?

A: Volume indicators, momentum oscillators like RSI or MACD, and support/resistance levels all complement the T3 well. The T3 tells you the trend direction, while other indicators help you time your entries and exits better.

Q: How often do the crossover signals happen?

A: It depends on your timeframe and market conditions. On a daily chart in a trending market, you might see a handful of crossovers per month. In choppy conditions, you'll see more, but many will be false signals. That's why backtesting is important.

Q: Is the T3 better than the EMA for trading?

A: "Better" depends on what you're trying to do. The T3 gives you earlier signals with less lag, which is great for catching trends early. But it's also more complex to calculate and can't be adjusted as easily. EMAs are simpler and more flexible. Try both and see which fits your style.

Wrapping This Up

The Tillson T3 Moving Average solves a real problem that most traders deal with: the lag between when a trend changes and when your indicator finally tells you about it. It's not magic, and it won't win every trade, but it does give you cleaner, faster signals than most moving averages.

The color-coded system makes it easy to see what's happening at a glance. The dual-line crossover setup gives you earlier entry signals. And the fact that it acts as dynamic support and resistance means you can use it for multiple purposes on the same chart.

But here's the thing: no indicator works on its own. The T3 is a tool, not a complete trading system. You still need proper risk management, you still need to understand the market you're trading, and you definitely need to backtest before putting real money on the line.

Take the Pine Script code, load it into Pineify, and spend some time watching how it behaves on different timeframes and markets. Test your ideas. See what works and what doesn't. The traders who succeed aren't the ones with the fanciest indicators. They're the ones who understand their tools and use them consistently.