Indicator Trix is used in determining of the overbought/oversold market conditions. You can also use it as an impulse indicator. Like in other oscillators, the values of Trix range near zero. When Trix is used as an oscillator, a positive value says for the overbought market, whereas a negative values testifies the oversold market. The Trix indicator is nothing more than a triple exponential moving average indicator. Whilst simple in its basis the actual calculation is quite clever as it “the log of the price input over the period of time specified by the length input for the current bar.

The Trix indicator is nothing more than a triple exponential moving average indicator. Whilst simple in its basis the actual calculation is quite clever as it “the log of the price input over the period of time specified by the length input for the current bar. The current bar’s value is subtracted by the previous bar’s value.

This prevents cycles that are shorter than the period defined by length input from being considered by the indicator” (Investopedia 2010). TRIX oscillates around a zero line so like most oscillating indicators a positive value indicates an overbought market and a negative value indicates an oversold market. Thus whenthe TRIX crosses above the zero line it gives a buy signal, and when it closes below the zero line, it gives a sell signal. You can also use divergences between price and TRIX to make your trading decisions. As you can see in the chart below you can apply a signal line to the TRIX indicator for metatrader. This will also allow you to use crossovers of the two lines and entries or exits. As always though but applying a signal line to an indicator you start to “create” signals where signals may not really be there.

Naturally it will be up to the individual if they want to use a signal line but sometimes it can be over kill. Filtering a filter ultimately can make you see things that are just not there.

Further, the TRIX indicator is considered to be one of the more leading indicators and by applying an average of an average you are pretty much slowing it down to become more lagging. But as always it is up to the individual trader. If you don’t want to use a signal just set the signal line to 1 in the MT4 properties of the TRIX indicator. This indicator has been used as a forex indicator more recently but I have seen it used on US indicies (like the Russell or E-mini and Dow contracts) more in my time on forex forums. But again with all these indicators you can use them how you wish. DOWNLOAD TRIX MT4 INDICATOR: There are also various other T3 indicators to download on GTS:- and.

I do not like this indicator because it has no historgram like the MACD. I really don’t see a reason to use a lagging indicator as a leading indicator. Giants Editor 4.1.9. There are no perfect indicators, formulas can not replace the judgemental process.