- TRIX
- Triple Exponential Smoothing Oscillator main page
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TRIX
- Triple Exponential Smoothing Oscillator
As
a momentum indicator, this oscillator is based on
smoothed moving averages and their momentum to avoid
insignificant daily price movements and to aid timing.
Overview
TRIX,
developed by John Hutson, displays the percent rate-of-change
of a triple exponentially smoothed moving average
using an equity's closing price.
- TRIX swings on an
open scale around a zero line
- A buy signal is generated
by extreme negative levels
- A sell signal is generated
by extreme positive levels
- Divergences between
TRIX and the equity can aid in timing turning
points.
Interpretation
- TRIX is best used
in conjunction with CCI
or Parabolic SAR.
- Depending on the number
of periods chosen, TRIX keeps an investor in trends
shorter than specified.
Signals
Similar
to the use of the MACD indicator, a 9-period moving
average of the TRIX can be used to create a signal
line.
- A
buy signal is given when the TRIX rises
above its signal line.
- A
sell signal is given when it falls below
the signal line.
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