Description
Indicator TRIX - is a dynamic indicator that shows the degree of change in the percentage of triple exponentially smoothed moving average of the closing market price of the instrument. Fluctuating around the zero line, the indicator TRIX is designed to filter out traffic market instruments, which are small in relation to the larger trend of market-based instruments. The user specifies the period (eg 15) to form a rolling average, and those cycles that are shorter than this period are filtered.
Indicator TRIX is a leading indicator and can be used to predict turning points in the trend through its divergence with the price of market-based instruments. Moreover, you can create a sliding average with a smaller period (eg, 9) and use it as an impulse line to see where the indicator is ahead of her. Intersection of line indicator with its pulse line can also be used to buy or sell signals.
Calculation
To calculate the indicator TRIX, you must first select the period for the formation of an exponential moving average of closing prices. For the 15-day period, the calculation would be as follows:
1. Computes the 15-day exponential sliding average closing price;
2. Computes the 15-day rolling average of the exponential moving average, calculated in item 1;
3. Computes the 15-day rolling average of the exponential moving average, calculated in Clause 2 Now we have a triple exponentially smoothed sliding average closing prices, which considerably reduces the variability.
4. Finally, the calculated 1-day moving average percentage change, calculated in paragraph 3
Application
As the TRIX indicator measures the degree of changes in closing prices, the positive value of the indicator is interpreted as a sustained improvement in the closing market price of the instrument. The positive value of TRIX, in a manner similar to the positive development of the price, which allows the indicator to act as a buying signal whenever it crosses the zero line upwards. Similarly, crossing the zero line down implies that the price has closed below the trend at the end of each period, which may be a signal of sale.
Impulse line, as mentioned earlier, is also a useful indicator for the purchase or sale. As the pulse period is shorter than the line, the intersection of the above it suggests that the recent closing price is much higher. Buy signal occurs when the indicator TRIX crosses its line-up pulse and the signal-sale, respectively, the condition occurs when the indicator crossed his pulse down the line. During lateral movements of the market may be false signals, so the best indicator TRIX works when the price trend is developing. Like any other indicator, TRIX is desirable to use in conjunction with other indicators and aspects of technical analysis to improve the reliability obtained from the signals.
Sample
In the example with "Microsoft", all three bull crossing between indicator TRIX and his pulse was accompanied by a line dating back trends. These intersection points represent the ideal for shopping, because they were accompanied by a rapid development trend movement.
The use of graphics programs
TRIX indicator is present in most software products. The number of periods, typically defined by the first option, a pulse line may be specified in the sub window. Default settings are 15-day moving average with a 9-day pulse line. 30-day period may be used for a more conservative trend of the evidence, although 15 days would be quicker to respond to the potential formation of the trend.
Indicator TRIX - is a dynamic indicator that shows the degree of change in the percentage of triple exponentially smoothed moving average of the closing market price of the instrument. Fluctuating around the zero line, the indicator TRIX is designed to filter out traffic market instruments, which are small in relation to the larger trend of market-based instruments. The user specifies the period (eg 15) to form a rolling average, and those cycles that are shorter than this period are filtered.
Indicator TRIX is a leading indicator and can be used to predict turning points in the trend through its divergence with the price of market-based instruments. Moreover, you can create a sliding average with a smaller period (eg, 9) and use it as an impulse line to see where the indicator is ahead of her. Intersection of line indicator with its pulse line can also be used to buy or sell signals.
Calculation
To calculate the indicator TRIX, you must first select the period for the formation of an exponential moving average of closing prices. For the 15-day period, the calculation would be as follows:
1. Computes the 15-day exponential sliding average closing price;
2. Computes the 15-day rolling average of the exponential moving average, calculated in item 1;
3. Computes the 15-day rolling average of the exponential moving average, calculated in Clause 2 Now we have a triple exponentially smoothed sliding average closing prices, which considerably reduces the variability.
4. Finally, the calculated 1-day moving average percentage change, calculated in paragraph 3
Application
As the TRIX indicator measures the degree of changes in closing prices, the positive value of the indicator is interpreted as a sustained improvement in the closing market price of the instrument. The positive value of TRIX, in a manner similar to the positive development of the price, which allows the indicator to act as a buying signal whenever it crosses the zero line upwards. Similarly, crossing the zero line down implies that the price has closed below the trend at the end of each period, which may be a signal of sale.
Impulse line, as mentioned earlier, is also a useful indicator for the purchase or sale. As the pulse period is shorter than the line, the intersection of the above it suggests that the recent closing price is much higher. Buy signal occurs when the indicator TRIX crosses its line-up pulse and the signal-sale, respectively, the condition occurs when the indicator crossed his pulse down the line. During lateral movements of the market may be false signals, so the best indicator TRIX works when the price trend is developing. Like any other indicator, TRIX is desirable to use in conjunction with other indicators and aspects of technical analysis to improve the reliability obtained from the signals.
Sample
In the example with "Microsoft", all three bull crossing between indicator TRIX and his pulse was accompanied by a line dating back trends. These intersection points represent the ideal for shopping, because they were accompanied by a rapid development trend movement.The use of graphics programs
TRIX indicator is present in most software products. The number of periods, typically defined by the first option, a pulse line may be specified in the sub window. Default settings are 15-day moving average with a 9-day pulse line. 30-day period may be used for a more conservative trend of the evidence, although 15 days would be quicker to respond to the potential formation of the trend.
Nicholas Fisher
www.stockcharts.com
www.stockcharts.com
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