Useful articles of Forex

TRIX Indicator

TRIX Indicator

The TRIX indicator, Triple Exponential Average (TRIX, Indicator of relative price change) is a very interesting indicator of technical analysis. The TRICS indicator was created by Jack Hutson in the distant 80s of the 20th century. The indicator, you guessed it, belongs to the trend family, as it is built on the classic Exponential Moving Averages. The main advantage of the TRIX indicator over MA is that it gives an order of magnitude less false signals. It filters out "market noise", so to speak. When calculating the Triple Exponential Average, it excludes from the data series the values related to periods shorter than the indicator period, which smoothes the resulting line, excludes short-term market fluctuations from it and allows not to make unnecessary movements during deals.

The indicator of relative price change TRIX (Triple Exponential Average) is located in a separate window of the trading terminal. Consists of line and level 0.

If the TRIX line is above the 0 level, it means that the market is moving upward. While a reading below zero indicates a downtrend. If the TRIX line is above zero and is growing, the uptrend is strengthening, if it is below and falling, then the downtrend is strengthening. Everything is standard in general.

Note that when the line hovers near the zero mark, this usually indicates uncertainty and / or a calm continuation of the current higher order trend. At such moments, it is better not to take active action, but simply to conduct an analysis.

Some traders like to use several Relative Price Indicators in one window. Let's say two TRIX with different periods, slow 14 and fast 4. This design makes it possible to trade on smaller timeframes. The signal to open a position will be TRIX crossovers. That is, we buy when the line with shorter periods has broken through the larger one from bottom to top and sell when the smaller one has broken through the larger one from top to bottom. This option should be used when you get more experienced, it is usually not recommended for beginners. We will not talk about them in detail, you will understand everything yourself with experience. In a nutshell, if - then the main problem is the psychology of traders. When trading "fast", you must be prepared as psychologically and technically as possible. And these readiness come only with experience, you cannot learn right away.