Triple Exponential Average(TRIX)

 Triple Exponential Average tool indicator  was developed by Jack Hutson as an oscillator for the overbought/oversold market condition.The tool can also be used as a momentum indicator.
Therefore,Triple Exponential Average is an indicator that combines market trend with momentum.
It constitute of the triple smoothed moving average and the period percentage change.
The triple smoothed moving average covers the trend while the  period percentage change measures momentum.
TRIX is calculated using the following;
-15period exponential moving average (EMA) using closing price
-15period exponential moving average(EMA) using the first step above
-15 period EMA using the second step above
-1period percentage change from the third step above
The last formula is mostly considered as the TRIX  formula  and will mostly fluctuate from time to time.

The triple exponential average indicator normally oscillates at around zero.
Since this indicator oscillates at 0 it therefore follows that when TRIX is below 0.0 especially when it is moving lower,then the trend will be considered as a downward trend thus the trader should close any buy position and enter a sell position while when TRIX is above 0.0 especially when it is moving higher,then the trend will be considered as an upward trend thus the trader should close any sell position and enter a buy position.This is indicated in the candle stick chart below;


From the candle stick chart above ,the red arrow has indicated several oscillation for the TRIX indicator,that is;
-TRIX oscillation point at 0
-TRIX indicator curve
-TRIX oscillate below 0
- TRIX oscillate above 0
From the candle stick chart,when the trix indicator oscillate above 0,it signals the trader that the market is becoming oversold thus the market trend is moving upward thus the trader will be able to close any sell position and open a buy position while when trix indicator oscillate below 0,it signals the trader that the market is becoming overbought thus the market trend is moving downward thus the trader will be able to close any buy position and open a sell position.


Recommendation: If you are  day trader,use 1min,5min,15min and 30 min timeframe while if you are a swing trader,just use 1hour and above timeframe if you want Triple Exponential Average indicator to work well for you.





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