Q: Tips

- TRIX is one of the best indicators for filtering market noise - Slow to react — not ideal for short-term trading, excellent for swing/position trading - A 14-period TRIX on daily charts captures medium-term trends well - Divergences between TRIX and price often precede major reversals - Can be used as a standalone trend filter for other strategies

Question 1

What is TRIX?

Accepted Answer

TRIX is a momentum oscillator that displays the percentage rate of change of a triple exponentially smoothed moving average of the closing price. Developed by Jack Hutson, it filters out insignificant price movements and highlights the underlying trend direction. TRIX oscillates around zero.

Question 2

How it works

Accepted Answer

TRIX applies triple EMA smoothing, then calculates the rate of change: ``` EMA1 = EMA(Close, N) EMA2 = EMA(EMA1, N) EMA3 = EMA(EMA2, N) TRIX = ((EMA3 - EMA3[1]) / EMA3[1]) * 100 ``` The triple smoothing eliminates short-term cycles and noise.

Question 3

Key features

Accepted Answer

- **Above 0** — Underlying trend is up - **Below 0** — Underlying trend is down - **Zero-line crossovers** — Major trend change signals - **Slow-moving** — Filters out most market noise - **Leading** — Can signal trend changes before they appear in price

Question 4

Buy signals

Accepted Answer

- TRIX crosses above 0 (trend turns bullish) - TRIX is below 0 and begins rising (momentum improving) - Bullish divergence: price makes lower low, TRIX makes higher low

Question 5

Sell signals

Accepted Answer

- TRIX crosses below 0 (trend turns bearish) - TRIX is above 0 and begins falling (momentum weakening) - Bearish divergence: price makes higher high, TRIX makes lower high

Question 6

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 14 | Period for each of the three EMAs |

Question 7

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `TRIX(14) > 0` | Bullish underlying trend | | `TRIX(14) < 0` | Bearish underlying trend | | `TRIX(14) cross_over 0` | Trend turned bullish | | `TRIX(14) cross_under 0` | Trend turned bearish |

Question 8

Tips

Accepted Answer

- TRIX is one of the best indicators for filtering market noise - Slow to react — not ideal for short-term trading, excellent for swing/position trading - A 14-period TRIX on daily charts captures medium-term trends well - Divergences between TRIX and price often precede major reversals - Can be used as a standalone trend filter for other strategies