An oscillating technical indicator that attempts to identify cycles as well as reflect the momentum.
Overview
Developed by Jack Hutson, the Triple Exponential Average (TRIX) indicator is a triple-smoothed oscillator designed to eliminate cycles shorter than the selected indicator period. TRIX oscillates above and below a zero line like many other oscillators. However, it can also be used as a momentum indicator. When being used as a momentum indicator, positive values suggest that momentum may be increasing while negative values suggest that momentum may be decreasing.
TRIX on the EUR/USD 4H Chart on 3/21/2011
Source: VT Trader
Interpretation
Trades can be initiated when the TRIX indicator crosses the zero line. A signal line can also be used to generate trade signals. Divergence between the TRIX and price can also be an effective method of generating trades.
