|
Trix
Description
TRIX displays the percent rate-of-change of a triple exponentially
smoothed moving average of the security's closing price.
It is the 1-period percent change of an x-period exponential moving
average of an x-period exponential moving average of an x-period
exponential moving average of the closing price.
An article on the TRIX indicator appears in Volume One of
Technical Analysis of Stocks & Commodities magazine (TASC). The
TRIX indicator presented in the TASC article uses a slightly
different method to calculate the exponential moving averages and
displays the 1-period change in "points multiplied by 1,000"
(whereas MetaStock Pro displays the change as a percentage).
Interpretation
The TRIX indicator oscillates around a zero line. Its triple
exponential smoothing is designed to filter out "insignificant"
cycles (i.e., those that are shorter than x-periods).
Trades should be placed when the indicator changes direction. You
also can plot a 9-period moving average of the TRIX to create a
"signal" line (similar to the MACD indicator) and then buy when the
TRIX rises above its signal line, and sell when it falls below its
signal line.
|
