Function Name: trix

Tags: Moving Averages

Category: Trend

The TRIX oscillates around a zero line. Its triple exponential smoothing is designed to filter out insignificant cycles and show the prevailing trend of the base instrument.

The TRIX indicator is an oscillator used to identify oversold and overbought markets and it can also be used as a momentum indicator. When used as an oscillator, a positive value indicates an overbought market while a negative value indicates an oversold market. As a momentum indicator, a positive value suggests momentum is increasing while a negative value suggests momentum is decreasing. TRIX crossing above the zero line is a buy signal while closing below the zero line is a sell signal. Also, divergences between price and TRIX can indicate significant turning points in the market.

TRIX calculates a triple exponential moving average of Close price over the period of time specified by the Period parameter. The current bar's value is subtracted by the previous bar's value. This value along with zero line is plotted it on the chart.

Two main advantages of TRIX compared to other trend-following indicators are its excellent filtration of market noise as well as its tendency to be a leading rather than a lagging indicator. It filters out market noise using the triple exponential average calculation thus eliminating minor short term cycles that may otherwise signal a change in market direction. Its ability to lead a market stems from its measurement of the difference between each bar's "smoothed" versions of the price information. When interpreted as a leading indicator, TRIX is best used in conjunction with another market timing indicator to minimize the effect of false indications.







Default Value: 12  |  Minimum: 2  |  Maximum: 9999


Type: Numeric



Default Value: -1


Type: Boolean



Default Value: 0


Type: Boolean