Trix (technical analysis)

Article summary

Trix (or TRIX) is a technical analysis oscillator developed in the 1980s by Jack Hutson, editor of Technical Analysis of Stocks and Commodities magazine. It shows the slope (i.e. derivative) of a triple-smoothed exponential moving average. The name Trix is from " tri ple e x ponential." TRIX is a triple smoothed exponential moving average used in technical analysis to follow trends. Positive TRIX values indicate bullish price trends, while negative TRIX values indicate bearish price trends. TRIX crossing zero indicates a trend change. A TRIX signal line, a moving average with a smaller period, is used to anticipate where the TRIX line is headed. TRIX crossing above its signal line implies that the price will likely move higher. TRIX crossing below its signal line implies that the price will likely move lower. Trix is calculated with a given N-day period as follows: * Smooth prices (often closing prices) using an N-day exponential moving average (EMA). * Smooth that series using another N-day EMA. * Smooth a third time, using a further N-day EMA. * Calculate the percentage difference between today's and yesterday's value in that final smoothed series. Like any moving average, the triple EMA is just a smoothing of price data and, therefore, is trend-following.…

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