The
TRIX Technical Analysis indicator is one of the
Technical Indicators used in
technical analysis of stocks and commodities.
The
TRIX
indicator produces the
rate-of-change percentage of a
triple
exponential moving average of a
time-series representing a
security's closing price.
Calculate the n-period percent change
of an m-period exponential moving average,
of an m-period exponential moving average,
of an m-period exponential moving average
of the closing price.
The TRIX indicator oscillates around the zero line.
The basic TRIX trading rule is to buy and sell stock when the sign of the first derivative of the indicator changes.
The TRIX trading rule is sometimes modified slightly by creating an l-period exponential moving average
of the TRIX indicator and buying when
the TRIX indicator rises above this average,
and selling when it drops below the average.