Triple

Exponential
Average (TRIX)
BY:
KUHU
K
HARSH
z
 • Momentum Indicator or Trend Indicator
• Calculated using Moving averages

ABOUT TRIX •
•
Tripple smoothened
Oscillator used to identify oversold and
overbought markets.
• Oscillates around a zero line
• Combines trend with momentum.
• Triple smoothed EMA covers trend, 1-period % change of Tiple smoothed EMA
covers momentum.
• Standard setting for EMA- 15 days for Triple smoothed EMA, 9-days for signal
lines.
• Looking for more sensitivity, should shorten the timeframe.
• Looking for less sensitivity, we should widen the timeframe.
 STEPS TO CALCULATE TRIX

01 02 03 04 05

15-period Exponential 15 period EMA of result 15 period EMA of result Take 1-period % change TRIX
moving averages. from step 1 from step 2 of step 3 CALCULATED
HOW TO USE
01 TRIX is above zero, momentum is
bullish.

TRIX? 02 TRIX is below zero, momentum is

bearish.

spots divergences between~ direction

03 of TRIX line and direction of
candlesticks.

BULLISH DIVERGENCE- prices

04
make lower-lows, TRIX line upward
trending.

05 BEARISH DIVERGENCE- prices

make higher highs, TRIX line
downward trending.
Advantages of TRIX

Tendency to be a leading than lagging

indicator.

Excellent filtration of market noise.

INTERPRETAT
ION
Dow Jones Industrial Average covering
Sept 2001 to Sept 2002

TRIX indicator from the high of Mar 2002 to the low

watermark set in Jul 2002, was falling from a level of
plus 40.45 to a minus 83.07. This example clearly
shows that there is not any lag time between the DJIA
tuning south and the TRIX indicator following this
price action. The shorter the time frame, the more
accurate the indicator will signal the move in the issue
we are studying.
INTERPRETAT
ION
The 2001–2002 chart of the S&P 500 Index

Using two moving averages offers an advantage: by

watching the fast moving average cross over the slow
moving average, the trader can recognize the change
in direction of price action.
The first highly visible move was the downturn of the
market after the disasters of Sept 11. There was a
subsequent rebound in the third week of September,
with the 15-day moving average turning quicker than
the 30-day moving average.
Thank you!