Wednesday, April 17, 2024

TRIX

TRIX is a form of momentum indicator called a Technical Analysis Oscillator, developed in the 1980s by Jack Hutson, editor of Technical Analysis of Stocks and Commodities.

The purpose of TRIX is to clearly and accurately display the slope of the derivative of a triple smoothed exponential moving average of market closing prices, with the Trix name itself derived from the triple exponential nature of the indicator.

Since the TRIX indicator oscillates around the zero line, this report is designed to automatically filter out stock or currency movements that may be insignificant to the overall market trend.

For TRIX, just like any other moving average indicator report, TRIX’s Triple EMA is trend following in nature and can easily identify current trend movements.

Because of its zero line alignment, it is easy to spot uptrends and downtrends, as crossing the zero line signals a change in trend.

This is particularly useful as it allows the zero line to act as an active signal line, so an indicator showing a positive crossing of the zero line can act as a buy signal, while a signal showing a negative or downward crossing of the zero line can act as a buy signal. Sell ​​signal.

Trix is ​​an oscillator based on a triple exponentially smoothed moving average. Its purpose is to separate important changes in prices from random “noise” in prices. As a result, price trends become more pronounced. If Trix is ​​rising (while being positive), the momentum for price increases is increasing; conversely, if Trix is ​​falling, price increases are slowing down or even falling (if below 0).

Trix oscillates around a value of 0, and a break above this value is often considered a buy signal.
On the contrary, if Trix is ​​below 0, it means a sell signal.

Like most oscillators, the Trix is ​​also used to find price divergences as it is considered a leading indicator.

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