TRIX [TRIX]

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The TRIX function determines the momentum of a field by calculating the percent change of a triple exponential moving average for a given period of time. Parameters ------------------ Data          The data to use in the calculation. This is typically a field in a data series or a calculated value. Period        The approximate number of bars of data to include in the calculation, including the current value.                   For example, a period of 3 includes the current value and the two previous values. Function Value ------------------------ The TRIX is calculated by taking the percent change of a triple exponential moving average. In other words, an exponential moving average of the data is taken for the given period. Then, an exponential moving average is taken of that result for the same period, followed by another for the second result. The percent change in value of the third moving average is then returned as the value of the TRIX. The value of the TRIX at the beginning of a data series is considered to be zero. Since it uses exponential moving averages, its initial values will include the zero value in its calculation. Therefore, you may want to ignore values before three times the period has completed. Usage ----------- The TRIX is useful for identifying trends longer than the given period. This is because it de-emphasizes information from shorter periods using moving averages. It can be used to generate entry/exit signals by trading on the peaks and valleys. A 9-day exponential moving average of the TRIX can be helpful for detecting these trading points. See the sample entry/exit systems for an example using the TRIX. The TRIX can also be used by checking for divergences between price data and the TRIX of its value. Source ------------ This indicator is based on an entry in "Technical Analysis From A To Z" by Steven B. Achelis.